Gold is used in international settlements, industrial and domestic consumption, investment, risk insurance, speculative operations. Gold is an object of exchange trading along with other goods and financial assets. In terms of distribution, global and domestic gold markets are distinguished. Domestic gold markets, in turn, are free and non-free in relation to restrictions. There are also “black” gold markets emerging in a response to government restrictions on foreign exchange that apply to gold transactions.
There are currently over 50 gold markets in the world.
The price of gold since September 12, 1919 is determined daily in the London Interbank Gold Market using the method of Gold Fixing. The price of gold - the result of London gold fixing - is almost the world price for the supply of this physical metal and is used as a guide in the vast majority of contracts for the supply of physical gold. The price is set by London Gold Market Fixing Limited based on the results of existing supply and demand for gold.
London silver fixation since 1987 occurs only once a day and is based on customer bids. As they meet, the average value of these quotes is set.
The unit of measure in gold and silver is a troy ounce (31.1 grams), and the unit of calculation is the US dollar.
London platinum and palladium fixation has been in use since 1989. The unit of measure is 1 troy ounce (31.1 grams), and the unit of calculation is the US dollar, euro and British pound.
The People’s Bank of China calculates prices every business day based on the prices of gold, silver, platinum and palladium fixed in London at the time of calculation metal market and converted to yuan at the official exchange rate of the US dollar to the Chinese yuan, effective on the day following the day of pricing.