In our study, we aimed to identify the determinants of the price of gold using unrestricted VAR
model in Turkey, for the periods from January 2003 to August 2013. Results obtained by VAR
analysis (Granger causality, impulse responses, and variance decomposition) shows that the most
important variables affecting the gold prices in Turkey are exchange rate and silver price. The
results show that gold price is not depending on intra-country factors in Turkey such as interest
rate, gold reserves of the Central Bank, and Turkey is gold price taker.