All three are the basis for the casino capitalism of the last decade!

The simple relationship between currencies through a single common commodity does not exist.  Fluctuations in gold prices are dependent on gold itself rather than oil and other.With higher oil prices, the currency of oil exporting countries rise in value and of oil importing countries decrease in value.

Lower oil prices are good for the economy outside of the energy sector. Market reacts positively to the oil drop. Gold has an inverse relationship with the market and the dollar. Gold definitely does not an inverse relationship with the market.

Dear Kamal,

You are right. Most people still consider gold the safe heaven investment as a financial asset and as jewelry. A safe heaven can be broadly defined as an asset that protects investors’ wealth against financial crisis. Therefore an asset with a stable real value or, at least a stable nominal value, is an uncontroversial safe heaven, as it allows its holder to resell it without loss at any time especially in financial markets collapse.

This is what I found and I think it's right.  'Gold and silver prices express the strength of the global (non-U.S.) economy versus GDP growth and expectations of real interest rates in the United States.'

'Pricing gold or silver on a fundamental basis is far more difficult because prices depend on the valuation of other assets and on differences between U.S. data and the rest of the world. This makes trends driven by fundamentals very difficult to understand.

Many analysts base their arguments to buy or sell gold on a limited set of fundamentals or only on technicals. Gold bugs focus only on the explosion of public debt and/or on real interest rates. In 2013/2014 they got caught on the wrong foot and consequently they speak about conspiracy theories and market manipulation when the gold price falls.

Opponents, however, argue that gold brings no income, but only has a cost of carry. This opinion is also ingenious because during recessionary or inflationary periods in the United States, capital gains on gold are far higher than the total return on stocks or bonds including dividends and coupons.

Summarized from http://snbchf.com/gold/gold-and-silver-prices/ | SNB & CHF

Concerning gold price and stock market performances, this is interesting. (But for many of us, there's more to life than money, silver and gold.)

'If the past performance of these instruments is anything to go by, there is a deep connection between the two.  While there is no accurate theory that brings out a concrete correlation between the value of gold and the performance of the Indian stock market, a brief look at the history of investing habits of Indian investors paints a complicated picture.

In the 70's, the value of gold soared significantly, while the stock market remained flat. However, in the two decades that followed, gold prices remained comparatively stagnant, and the stock market gave exceptional returns. From the above data, it can be derived that these two shared an inverse relationship until 2002.'

http://www.smarterwithmoney.in/Investment/Gold/Articles/Is_there_a_correlation_between_gold_prices

Dear Miranda,

Thank you for detail answers with diagrams indicating  correlation between gold prices and stock market.  I found another study by Wang et al. (2010). These authors explored the impacts of fluctuations in crude oil price, gold price, and exchange rates of the US dollar vs. various currencies on the stock price indices of the United States, Germany, Japan, Taiwan, and China, respectively, as well as the long and short-term correlations among these variables. This empirical study revealed that there exist co-integrations among fluctuations in oil price, gold price and exchange rates of the dollar vs. various currencies, and the stock markets in Germany, Japan, Taiwan and China. This indicates that there exist long-term stable relationships among these variables. Whereas there is no co-integration relationship among these variables and the U.S. stock market indices which indicates that there is no long-term stable relationship among the oil price, gold price and exchange rate and the US stock market index.

Wang ,Mu-Lan , Wang Ching-Ping and Huang ,Tzu-Ying (2010). Relationships among Oil Price, Gold Price, Exchange Rate and International Stock Markets ; International Research Journal of Finance and Economics, Issue 47, PP. 82-91.

What else could be said after all fine responses? I recommend the following reading Gold Price "Remarkably Stable" in Face of Crude Oil Crash, Stock Market Drop, New Euro Crisis and 8-Year High in US Consumer Confidence!

https://www.bullionvault.com/gold-news/gold-price-121220144

Trend in Gold, Oil and Dollar Historical Chart for the last 10 Years

The following chart compares the movement in the dollar index with gold and oil prices over the last ten years. The three series are compared using standard deviation. Can experts comment on it, plz?

http://www.macrotrends.net/1335/dollar-gold-and-oil-chart-last-ten-years

Good models? If i would know one that works i would drive a Rolls, and own my own island.

There are models around, they are just not that great. Be careful what you read, some articles are pure publicity.

Gold is included in the analysis and still is the most important precious metal and thus plays a unique role as a store of value particular in times of political and economic uncertainties. the co-integration relationship and causality of crude oil and gold futures to interpret the dynamics of the commodity futures markets in a macroeconomic context. The excessive price fluctuations induce additional interest resulting in various studies and economic analyses in order to understand the influences and aftereffects. Biofuels draw a great deal of attention in an attempt to link the energy markets and agricultural commodities. Even though there is a noticeable link is present between energy markets and agricultural commodities through biofuels no clear-cut evidence can be provided for policymakers. 

http://ageconsearch.umn.edu/bitstream/114626/2/Natalenov_Valeri_25.pdf

Yes, dear Mahmoud. The relationship between Gold, Oil and Dollar prices can be summarized and represented by the chart you attached which compares the movement in the dollar index with gold and oil prices over the last ten years.

Dear Bradut, Thank you for the answer and the warning. As I emphasized inside the question I am interested to learn about sound theoretical or empirical models between these commodities and not just some articles which are pure publicity. 

Actually I was trying to read the following article "Dynamic transmission effects between the interest rate, the US dollar, and gold and crude oil prices" by Wang and Chueh (2013):

Abstract: This paper shows that in the short term both gold and crude oil prices positively influence each other. Interest rates have a negative influence on the future gold prices and a positive influence on the future crude oil prices. In the long run, a relationship exists whereby interest rates influence the US dollar, which in turn influences international crude oil prices. When the Federal Reserve Board (Fed) lowers interest rates to boost the economy, market expectations for oil demand change and, as a result, crude oil prices fluctuate. In addition, there is a price transmission relationship from interest rates to gold prices. A reduction in interest rates influences investor expectations with respect to depreciation of the dollar. Investors then move their capital to the gold market for capital preservation or speculation. Finally, international gold and crude oil prices have feedback effects on interest rates. This paper infers that crude oil prices increasing to a certain level trigger inflation, at which juncture the Fed may tighten monetary policies to downturn the bloom economy.

As you can see It seems so dynamical interrelationships DO exists between them, but I could not finish the abstract yet (it is too much expectations:

So if you and other experts are aware of sound models, it can help me a lot to comprehend the relationships between them.

Wang, Yu Shan and Chueh, Yen Ling (2013). Dynamic transmission effects between the interest rate, the US dollar, and gold and crude oil prices. Economic Modelling, Volume 30, January 2013, Pages 792–798. doi:10.1016/j.econmod.2012.09.052

Fluctuations in gold, crude oil, and stock markets prices are political games that are played very well. Our country has very weak economy so it is little affected by these fluctuations. We have relatively very little gold, we also have a feeble stock market, and when the price of crude oil drops there will be no change in the high costs of crude oil derivatives. Our people may suffer from global increases of fuel & food prices but they are used to the hardships of life for many years.  

Dear Mahmoud,

There is a great answer for your question in the following attached article. It talks  about the dynamic and complex relationship among these variables.

Some good papers about this issue exist at ResearchGate data base. Here are some of them.

Article Casual or Causal Relationships between the U.S. Dollar, Gold...

Article The relationship between oil prices, gold prices and US stoc...

Article Oil Price Fluctuation and Stock Market Performance-The Case ...

Dear Nizar,

Thank you for your answer. Having little or large reserves of gold has no correlation with welfare of a country (nothing to do with rich or poor countries) nor of political games. Take the case of Pakistan, for example . Pakistan is in possession of 1339.25 tons of gold reserves and is the 5th largest country in the world having gold reserve.

Dear Mohammad and Ljubomir,

Thank you for your answers and the links you provided for further studies on this subject. Really appreciated.

Dear Mahmoud Omid,

All assets existing on the market are linked to some extent.

All financial market values are influenced by interest rates,  that's because it's influencing the leverage used by traders. And interest rates are linked to inflation management, so central banks adjust the interest rates based on prices indexes, so it's a two way connection.

Gold is used by many investors as a refuge for capitals during uncertain times. High volatility may trigger gold rush...

Prices are driven by market leaders behavior. They are not automatic, as free markets exists only in theory. This is done either directly, by buy/sell orders, or indirectly by releasing information designed to influence the markets.

Dear Bradut, Thank you for your comments, As you said "releasing information designed to influence the markets" is more important than buy/sell orders and also ,say technical or fundamental analyses when we consider stock market in my country. What are the best indicators over there?

Dear Mahmoud Omid

You still push quantitative methods, while qualitative methods are more appropriate when dealing with investors behavior. What journals do they read? What RSS feeds do investors monitor, what type of news trigger their actions? Who are the main opinion leaders? That's behavioral dimension added to technical or fundamental analyses. If you blend them all three somehow, you may have a winner model. However, in order avoid being self defeating, it cannot be published. That's when you enter the high stakes games. Personally i would never put such research online, and in a internet connected device, to start with.

Dear Bradut , 

Investors do not always make their decision rationally. I agree with you that investors do not always make the decisions and actions based on reason, but they are driven by psychological factors. In fact, mentality has significant influence on the behavior of investors. In a qualitative (!) study by Phan and Zhouz [attached file] in Vietnam stock market during bearish stage, the authors found out that the psychological factors including overconfidence, excessive optimism, attitude towards risk and herd behavior are likely to exist naturally that people can not realize them.

Higher price of oil would translate in higher prices of gold. Why? some explanations here:

The main idea behind the gold-oil relation is the one which suggests that prices of crude oil partly account for inflation. Increases in the price of oil result in increased prices of gasoline which is derived from oil. If gasoline is more expensive, than it’s more costly to transport goods and their prices go up. The final result is an increased price level – in other words, inflation. The second part of the causal link is the fact that golds tend to appreciate with inflation rising. So, an increase in the price of crude oil can, eventually, translate into higher precious metals prices. Hence, both commodities tend to trade in the same direction. If you want to know more, in terms of statistical modeling, the following link explains.

http://www.marketoracle.co.uk/Article38141.html

https://www.researchgate.net/publication/285590240_Sensitivity_Analysis_of_Macroeconomic_Variables_and_Stock_Returns_A_Cross-Country_Comparison_between_Bangladesh_and_India?ev=prf_pub

Book Sensitivity Analysis of Macroeconomic Variables and Stock Re...

Thank you for introducing your paper. Since I asked the question about "What are the interrelationships between oil, gold and stock market prices?" I watched various market indicators here and elsewhere. It looks not a significant interrelationship among these four. I come to a conclusion that exogenous factors such as politics, sanctions, ... have more influence on the rise or fall of these indicators.  This is my understanding about Iran markets. I would very much like to hear about other counties experience.

HI,

You may be interested by this recent paper:

Oil price uncertainty and Chinese stock returns: New evidence from the oil volatility

Finance Research Letters, February 2017, volume 20, Pages 29-34

Xingguo Luo, Shihua Qin

Best regards

Dear @Mahmoud, there is fine ongoing discussion under related research question. Many answers and resources are available.

https://www.quora.com/What-is-the-relation-between-Oil-prices-Gold-Stock-Markets-and-Dollar-prices

https://mpra.ub.uni-muenchen.de/70452/1/MPRA_paper_70452.pdf

Dear @Hamit Can. Thank you for the link to the interesting investigation by Mongi Arfaoui and Aymen Ben Rejeb entitled: Oil, Gold, US dollar and Stock market interdependencies: A global analytical insight.

The authors find significant interactions between all markets. The authors found a negative relation between oil and stock prices but oil price is significantly and positively affected by gold and USD. Oil price is also affected by oil futures prices and by Chinese oil gross imports. Gold rate is concerned by changes in oil, USD and stock markets. The US dollar is negatively affected by stock market and significantly by oil and gold price. Indirect effects always exist which confirm the presence of global interdependencies and involve the financialization process of commodity markets.

This is another paper by Samih Antoine Azar on The Relation of the US Dollar with Oil Prices, Gold Prices, and the US Stock Market

The author found that the law of one price holds for US stocks, gold, and oil. This law specifies that a 1% appreciation of the US dollar leads to a 1% fall in the price of stocks, gold, and oil. This is true for the simple reason that stocks, gold and oil are denominated in US dollars. Next intrinsic returns are calculated. Intrinsic returns are defined as those asset returns that treat the US dollar unchanged. Although raw returns are marginally negatively correlated with the US dollar, intrinsic returns and the US dollar are essentially independent. Nevertheless the paper uncovers a calendar break in September 2002. Before this date raw and intrinsic returns of US stocks are positively correlated with the US dollar, while they are negatively correlated afterwards. The implications for portfolio analysis are clear-cut: investors should hold a portfolio that is long in equity, gold and oil, although oil has on average a zero return and suffers from excess volatility. It may seem that foreigners benefit additionally from a stronger dollar. However the US dollar has itself a zero average return.

Source:

Samih Antoine Azar, The Relation of the US Dollar with Oil Prices, Gold Prices, and the US Stock Market, Research in World Economy Vol. 6, No. 1; 2015.