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Gold markets

Discover out which are the main gold markets from London to New York, whilst keeping an eye on the east

All gold markets in the world

London

One of the most interesting and qualified markets in the gold sector, so much so that on a daily basis, at two times of the day, it issues a price that is considered an official quotation that cannot be disputed by traders all over the world.

Gold exchanges between the members of the London Bullion Market Association (LBMA) determine the gold fixing (LBMA gold price) twice a day, at 10:30 and 15:00 GMT. Most international gold contracts refer to these quotations. Approximately 500 tonnes of gold are traded on the London market every day, equivalent to about one fifth of global annual production.

Switzerland

Has a reputation as an important market, thanks in part to the experience and professionalism of Swiss banking, corporate and credit groups. It is, however, subject to British rules. Switzerland is home to the world's largest refineries, which account for most of the mines.

New York

Last gold market to come into being, due to prohibition, but booming. The Comex of the New York Mercantile Exchange (NYMEX) is the trading hub for the whole industry. Here one can trade gold futures, through which one takes a position on the precious metal.

Hong Kong

This is the oldest gold market, as well as the largest in the Far East and the 4th largest in the world. Open on Saturdays and when London and New York are closed. What sets it apart is the tendency for prices to be as much as 10% lower than those on the mainland.

Singapore

A market linking London and the Land of the Rising Sun that has its own fixing set at 2pm local time. This is because it is a market very close to the world's two main importers of the metal: India and China.

The intention of a fixing dedicated to the Singapore market is to reduce price volatility, which generally occurs between the closing time of markets in the West and the early opening hours in Asia, when Asian demand for gold is not immediately reflected in the prices fixed, as these are still linked to the London auctions.

Shanghai

Here the market is responsible for regulating the trading of precious metals. China boasts of being one of the leading producers of jewellery and industrial products that process noble metals, as well as the main importer and producer of gold, which is considered to be the best investment and savings option, which is why it needs to have its own index that publishes the price of gold twice a day based on supply and demand.

Istanbul

Private market created to organise trade and financial practices in the Turkish state, which stands as one of the largest producers and consumers of jewellery.

Dubai

The Middle East market has the role of a financial centre dedicated to the precious metals trade. It is a constantly growing market, with the volume of trade increasing every year.

How do gold prices work?

Euro/Gram
LAST PRICE: 61,22
MINIMUM: 61,22
MAXIMUM: 61,22
Dollar/Ounce
LAST PRICE: 2.072,32
MINIMUM: 2.072,32
MAXIMUM: 2.072,32

How do gold prices work?

The gold market is unique and must be well known when deciding to invest, even if it is the refuge asset par excellence. For example, its quotation is often against the trend compared to the financial markets, but there is no lack of cases, as happened in the first months of the lockdown in 2020, when the two indices, financial and gold, travelled in the same direction.

In fact, gold is in all respects a financial instrument whose price is set almost exclusively in the stock markets of London, New York and Shanghai, and only to a much lesser extent, almost negligible, do the exchanges that take place in the physical markets (bars, coins, used gold, etc.) have an impact on prices.

Let us start with a basic concept of economics with which we are all familiar: that of supply and demand. To oversimplify, when the demand for a good exceeds supply, the price of that good rises; conversely, when there is a greater supply than consumer demand, the price tends to fall. How does this law affect the value of gold? Or does it affect it only marginally?

First of all, don't confuse quotation and price of gold: while the price can be easily known by consulting the charts of the world's economic centres, the quotations are established through the Fixing which has its historical seat on the London market and which establishes a quotation based on supply and demand while also trying to maintain a balance based on market trends.

The gold market opens daily at 10.30am and ends at 3pm. From the earliest moments, the various movements of supply and demand set the price, but the opening and closing quotation represents a globally controlled, clear and transparent fixed point to safeguard market participants. Fixing is carried out twice a day and is based on the 3 most important currencies in the world, namely the euro, the pound and the dollar. The actual quote is then passed on to the historic London Bullion Market, which then sets the price that is communicated to each investor.

It is precisely this certain and shared mechanism on all world markets that makes gold so stable and perfect for those who want to invest and secure their savings.

Did you know that... according to the WGC (World Gold Council), in 2019 jewellery accounted for half of the world's physical gold demand (2,192 tonnes), bars and coins one-fifth (877 tonnes), central banks' allocation 15% (658 tonnes), ETFs one-tenth (438 tonnes).

 

Why gold