Machine Learning Based Hybrid Model for Gold Price Prediction in India

Precious metals like gold are in high demand due to their usage as jewellery, storage of value and also as part of a diversified investment portfolio. When it comes to an investment option, it is obvious for the investors to know the expected returns in advance. Researchers apply a number of statistical and machine learning techniques to predict the future expected return of investment on gold. However, accuracy in prediction is still a challenging task due to the volatility in the market affecting parameters. The present study intended to analyse the effectiveness of a machine learning based hybrid model in predicting the future price of gold. Artificial Neural Network (ANN) based on Particle Swarm Optimization (ANN-PSO) model has been tested on monthly gold price in India for the period of January 2012 to June 2021. The experimental results of the present study investigated that the ANN-PSO model is capable of predicting the future gold price with high accuracy.