Gold is traded in many places around the clock. Because of this rough and tumble nature of trading, ascertaining the real price of gold is a serious challenge. However, investors who want to get the best value for their money has to know what spot gold price is.
Spot gold price refers to the over the counter market price of gold. It is the most commonly used benchmark value for an ounce of the precious metal among small retailers and individual buyers. Spot gold price is not stable, changing invariably with fluctuations in currency markets as well as changes in supply and demand. In other words, economic condition is what impacts the relative value of gold among different gold spot markets.
As with currency trades, sales of gold are done by taking an opposite position against the US dollar or currencies of other countries. Spot gold prices are quoted two days before the preliminary transaction date. Quoting of prices is done in London. Prices are fixed twice a day. As with market currencies, trading of gold is conducted round the clock every day of the week (except Saturday). Trades start at 6pm Sunday and closes at 5pm Friday. Trading is done at three major centers: London, New York, and Zurich. Gold price tends to be at its highest when all major centers are open. No central market exists for gold trading.
Large-scale bullion brokers tend to sell or buy gold at five percent above or below the spot gold price.
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