Googling Gold in Indonesia

In this modern world, collecting information becomes easier and quicker. Google Search dominates the market worldwide as an important source of information. With the number of people use it, many researchers try to utilize it as a tool to observe the behavior of population. Previous researches mainly focus on the stock market, while the researches in the commodity maker are still rare. This research applies an auto regressive model and Granger causality to explores the relationship between investor attention (captured by Google Trend) and gold. Indonesia has the largest gold mine in the world and there is a growing trend from people to invest in gold especially through digital platforms. The number of people use Google Search to collect information in Indonesia will support the exploration of investor attention. The result shows that when there is a positive return in gold, it will decrease search queries. In return, the negative return will increase search queries. This result shows how people treat gain and loss differently. In addition, google trend can be used as an instrument to forecast gold return