GOLD PRICE FORECAST USING FUZZY LOGIC

Forecasting in management is to assist decision making. It is also described as the
process of estimation in unknown future situations. In a more general term it is
commonly known as prediction which refers to estimation of time series or longitudinal
type data. Gold is a precious yellow commodity once used as money. 41 years ago it
was made illegal in USA, but now once again accepted as a potential currency. The
demand for this commodity is on the rise. People love gold. People love to own and
keep gold. Gold is considered precious. People are always considering owning gold as a
better option than paper currency. The reason behind it is that paper currency is a tool
these days used by governments and those that influence them to control
economies. However, this cannot be done with gold, hence the dropping of the gold
standard. A currency will change and can be the subject of manipulation, inflation and
depression. So it is crucial to invest in gold for future benefits and in order to be
successful in gold investment, one have to master in gold price prediction. This is why
the research for gold price forecasting to predict the next value of gold is crucial and
important. Based on some research for prediction of gold price, the historic data of gold
price as well as the exchange rate can be the most influential factor in determining the
next gold price. Applying this knowledge, the inputs for next gold price prediction are
mainly its historic gold price value and the exchange rate of world's major currency
which are United States Dollar and British Pound. The research methodology to be used
and implemented will be discussed further in next chapter.