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After liberalization and globalization, the focus of many researchers has been on the study of behavior of financial variables. Study of movements of and relationship between stock indices, exchange rates, gold prices, silver prices, crude oil prices, futures and options, currency futures and options, etc. are the key areas of attraction for these researchers. Among these, gold and crude oil are the two commodities which are considered to be key commodities for any economy. Gold was earlier considered as the standard currency as it was widely accepted for international payments. It is also an important part of reserve fund maintained by the central banks of all the countries. Crude oil is also an important commodity that affects the economy of every country. The higher price of crude will benefit the oil producing and exporting economies and affect negatively the countries which import oil for their domestic consumption. Oil production and consumption are used as an indicator of economic activity. Changes in its price quickly affects the consumer prices (inflation), leading to shifts in monetary policy which will have a significant impact on the economy.
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