The price of gold is set continuously throughout the trading day in global markets, with the most important price discovery happening in three places. The London bullion market handles spot, the COMEX futures exchange in New York handles futures, and the Shanghai Gold Exchange handles the largest Asian market.

Spot vs. futures

The spot price is the current market price at which gold can be bought or sold for immediate delivery. Futures prices, by contrast, are agreements to buy or sell gold at a specific price on a future date. While the two are closely linked, futures often reflect expectations about interest rates and storage costs.

The London fix

Twice each business day, a group of large bullion banks meets electronically through the LBMA Gold Price auction to establish a benchmark price. The 10:30 AM and 3:00 PM London time fixings are used as reference rates for contracts and reporting worldwide.

What moves the price

Day-to-day movements in gold are driven by changes in real interest rates, the strength of the U.S. dollar, geopolitical events, central bank buying or selling, and broader market sentiment. Because gold pays no interest, it tends to become more attractive when bond yields fall.

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