Price is discovered, not set
No single person sets the gold price. It emerges from continuous trading between banks, funds, producers, jewellers, and individuals across London, New York, Shanghai, and other centres, nearly 24 hours a day on weekdays.
The '' is the price for immediate delivery. Twice a day, the LBMA Gold Price benchmark is published through an electronic auction and is used in many contracts.
Why the price you pay differs
Coins and bars sell above spot because of manufacturing, distribution, and dealer costs (the ''). Trading platforms show a and an around the price.
Key takeaways
- Gold's price is discovered through global trading.
- The LBMA benchmark is set twice daily.
- Retail prices include premiums above spot.
Knowledge check
Who sets the spot price of gold?
Key terms · hover or tap for a definition