Who Creates The Spot Gold Price?
The spot gold price is price of gold for immediate delivery and payment settled in 2 business days. The price is set by the law of supply and demand.
What exactly is the spot gold price?
The spot gold price is the price paid by a gold buyer to the gold seller for a delivery and payment settlement on an immediate basis. For commodity traders, immediate settlement is defined as a transaction initiated and closed to both parties satisfaction within 2 business days.
Who regulates the spot gold price market?
In the USA, spot gold markets are currently regulated by the commodities futures trading commission). In addition, the gold market exchanges doregulate their transactions. This is done to ensure that the products delivered meet acceptable standards for quality. Since a commodity like gold cannot easily be visually inspected by the buyer, the exchanges will guarantee a certain level of quality upon delivery. Since delivery is done immediately, regulation is not as necessary as a futures contract delivery and settlement.
Does the CFTC set the spot gold price?
No, the cftc sets standards for the performance of the market participants to insure efficient and orderly conduct of business. Market prices are set by the activities in the gold spot market itself and is subject to change without notice.
Please explain how market activity can set the spot gold market prices?
The spot gold price is set by supply and demand, both current and anticipated prices expected by the traders of spot gold. Whenever there are more buyers than sellers, the prices go up because the demand exceeds the current supply. When sellers outnumber buyers prices decline because supply exceeds demand. Whenever traders expect changes that will make prices fluctuate, they will buy or sell their gold to maximize their profits.
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