What is Gold Price Fixing?
When Gold Prices are Fixed?
What is Gold Price Fixing?
It is a benchmark,which provides a standard rate for pricing the gold products in the world's markets. It is because the gold price is changing at each instant of a business day due various factors (i.e., demand and supply, inflation, speculation, war etc.), so it is difficult for an individual business maker to follow the spot price due to its rapid change.
When gold price is fixing?
Irrespective of Gazetted Holidays and Weekend (i.e., Saturday and Sunday), the gold price is changed at each instance of time e.g., each second of a business day. The gold price is fixed twice every business day, that is, at 10:30 am and 3 pm, by the “London Gold Market Fixing Ltd” at London time, in the United States dollar (USD), the Pound sterling (GBP), and the Euro (EUR).
Factors that affect Gold Price.
The gold prices are affected by different factors e.g.
- Demand and supply of Gold.
- Different type of speculations.
- Hedge against financial pressure.
- Central Banks Strategies.
- The International Monetary Fund (IMF).
- Industrial demands of gold.
- Buying more jewelry.
- War.
- National Emergency.