i tried searching these things on web but still wasnt able to find the answer....so plz help me out...

1. iv always marked one thing in the indian stock market tht its movement depends highly on international market. for eg. if dow jones, nasdaq, ftse, or hang seng goes up the other sensex goes up too...where as if the international market declines our market also declines. can anyone plz tell me the reason behind such movements ?

2. secondly, recently the prices of gold went down. can anyone plz tell me the reason behind gold prices being so volatile ?

your initiative to help me out is appreciated.

thanx in advance.