Financial sector development and economic development are inter-related. Economy cannot improve the living standards of peoples in the absence of a well-functioning and efficient financial sector development. In the current scenario, the activities of financial markets and their relationships with the real sector have assumed significant importance. Over the past few years, the financial market has observed financial crises all over the world. Those crises have considerably affected asset prices that led to give negative portfolio return to investors. As a result, Investors are looking to shift their investments from risky instruments to less risky instruments with the object of minimizing their potential risk of loss. Gold is one among these instruments which protect the investors from such particular risks.