How is the price of gold fixed ?

The price of gold, a crucial indicator in the world of precious metals investing, is determined by a complex and dynamic set of factors. At the heart of this process is the law of supply and demand: increased demand for gold, whether for investment reasons, jewelry making, or reserves by central banks, can lead to an increase in its price. Conversely, abundant supply can lead to lower prices.

Global markets

Global markets also play a crucial role. The London Bullion Market, for example, is a key center for gold pricing, where two daily gold fixing sessions take place, determining an international benchmark price. This price is influenced by various macroeconomic factors, such as the health of the global economy, interest rates, inflation, or the value of currencies, particularly the US dollar.

Geopolitical tensions

Geopolitical tensions and economic crises can also affect the price of gold. As a safe haven, gold often sees demand increase during times of uncertainty, which can cause its price to rise.

In addition, because gold is traded on several commodity exchanges around the world, such as the COMEX in New York and the Shanghai Gold Exchange, trading on these platforms also impacts its price.

Finally, seasonal variations and market trends, such as the purchase of gold during festivals or weddings in certain cultures, can also temporarily influence the price of gold.

At GoldUnion, we closely monitor these dynamics to provide you with accurate and up-to-date information, helping you make informed decisions for your gold investments.