Application of FAHP in Gold Price Fluctuation Factor Evaluation
Keywords:Gold price, Fuzzy Analytic Hierarchy Process, Factors, Fuzzy AHP
Gold has become one of the most popular and secures type of investment in our country. However, the price of gold shows a high level of volatility. This paper aims to explore the use of Fuzzy Analytic Hierarchy Process (FAHP) in evaluating and ranking the Malaysian gold price fluctuation factors. Nevertheless, there are not many researches have been done on FAHP method in gold price analysis. Hence, FAHP as tools of measurement have been applied to evaluate, compare, and rank the gold price fluctuation factors. Specifically, four factors that contribute to the volatility of gold price are determined from experts. The factors are currency exchange, demand, inflation and mining. The evaluation of FAHP shows that the highest value of normalized weight was 0.6892 for the currency factor. This study concludes that the most important factor that affects the gold price change is the currency exchange.
Anis, M.D., Noorhaslinda, K.R. & Jaharudin, P. (2019). Factors Determining Gold Prices in Malaysia. Universiti Malaysia Terengganu Journal of Undergraduate Research, 1(2), 75-82.
Ayhan, M. (2013). A Fuzzy AHP Approach for Supplier Selection Problem: A Case Study in a Gearmotor Company. International Journal of Managing Value and Supply Chains, 4(3), 11-23. http://dx.doi.org/10.5121/ijmvsc.2013.4302.
Mardhiah, A, Mahat, N and Siti, S (2019). Forecasting Malaysia Goldâ€™s Price by using Neural Networks. Jurnal Intelek, 14(2), 126-135.
Cebi, A. & Karal, H. (2017). An Application of Fuzzy Analytic Hierarcy Process (FAHP) for Evaluating Studentsâ€™ Project. Educational Research and Riviews, 12(3), 120-132.
Erkan, T.E. & Can, G.F. (2014). Selecting the Best Warehouse Data Collecting System by using AHP and FAHP Methods. Technical Gazzette, 21(1), 87-93.
Fatemah, K. Niloufar, P.K., Masoud, R.G. & Farimah, M.R. (2019). Application of Fuzzy Analytic Heirarchy in Failure Investigation of Knowledge-based business plans. SN Applied Sciences, 1, 1368.
Kabir, G. & Hasin, M. A. A. (2011). Comparative analysis of AHP and Fuzzy AHP Models for multicriteria inventory classification. International Journal of Fuzzy Logis Systems, 1(1), 1-16.
Lili, L. & Diao, C. (2013). Research of the Influence of Macro-Economic Factors on the Price of Gold. Procedia Computer Science, 17, 737-743.
Mahmoodzadeh, S., Shahrabi, J., Pariazar, M., & Zaeri, M. (2007). Project Selection by Using Fuzzy AHP and TOPSIS Technique. World Academy of Science, Engineering and Technology, 333-338.
Muhammad, K.A., Nor Hazila & Noor Saadah (2015). The Relationship Between Selected Macroeconomic Factors and Gold Price in Malaysia. Kuala Lumpur International Business, Economics and Law Conference, 8(1), 182-193.
Nair, G. K., Choudbary, N., & Purohit, H. (2015). The Relationship between Gold Prices and Exchange Value of US Dollar. Emerging Market Journal, 5(1), 17-25.
Omag, A. (2012). An Observation of The Relationship Between Gold Prices and Selected Financial Variables in Turkey . The Journal of Accounting and Finance, 195-206.
Ozdagoglu, A. & Ozdagoglu, G. (2007). Comparison of AHP and Fuzzy AHP for the Multi-criteria Decision-making Process with Lingustic Evaluations. Istanbul Ticaret Universitesi Fen Bilimleri Dergisi, 6(11), 68-85.
Said, E. & Imad, B. (2009). Gold Price Determinants: Empirical Analysis and Implications. International Business and Entrepreneurship Development, 4(3), 161-177.
Sindhu, D. (2013). A Study on Impact of Select Factors on the Price of Gold. IOSR Journal of Business and Management, 8(4), 84-93. Available at DOI: 10.9790/487x-0848493.
Srichetta, P., & Thurachon, W. (2012). Applying Fuzzy Analytic Hierarchy Process to Evaluate and Select Product of Notebook Computers. J. International Journal of Modeling and Optimization, 2(2), 168-173. http://dx.doi.org/10.7763/ijmo.2012.v2.105.
Sahaida, L., Hamidah, R., Nurul, H. & Nur Zaidah (2017). Macroeconomic Variables Affecting the Volatility of Gold Price. Journal of Global Bussiness and Social Entrepreneurship (GBSE), 3(5), 97-106.
Zakaria, H., Abdul Shukur, N., Affandi, S., & Wan Mahmood, W. (2015). Factors Affecting the Price of Gold in Malaysia. Journal of Basic and Applied, 41- 46.
How to Cite
Copyright (c) 2021 Norpah Mahat, Aini Mardhiah Yusuf, Siti Sarah Raseli
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.