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Optimized Gold Price Prediction Using Particle Swarm Optimization-Enhanced LSTM Networks

Author(s): Alladi Vennela and Radha Mohan Pattanayak *

Pp: 196-205 (10)

DOI: 10.2174/9798898812102125030017

* (Excluding Mailing and Handling)

Abstract

Gold has long been regarded as a valuable asset and a reliable haven for investors, particularly during periods of economic uncertainty. Gold price forecasting is difficult due to the market's intrinsic volatility and sensitivity to various factors, including global economic trends, inflation rates, currency value fluctuations, and geopolitical events. This study presents a novel strategy for predicting gold prices that combines Long Short-Term Memory (LSTM) neural networks and Particle Swarm Optimization (PSO). Traditional models struggle with these complications of uncertainty, but the PSO-LSTM technique improves LSTM hyperparameters for greater accuracy. The PSO-LSTM model beats both standalone deep Learning models and traditional forecasting, based on performance criteria such as Mean Absolute Error (MAE), Root Mean Square Error (RMSE), and Mean Absolute Percentage Error (MAPE).


Keywords: Deep learning, Gold price, LSTM, Machine learning, Optimization, Time series.