Live Metal Prices / oz
Gold: 1827.25 USD
Silver: 21.14 USD
Platinum: 903.00 USD
Palladium: 1856.50 USD
Rhodium: 14100.01 USD

How is the Gold Spot Price Set?

The removal of a gold standard for money has seen fiat currency values inflate exponentially, and the price of gold rising as a result. For example, in 2000 the spot price of gold per ounce was around $400/oz. However, during the Covid pandemic, it went through a period of explosive growth, with prices reaching levels over $2,000/oz in 2021. Yet the price of gold hasn't gone straight up, and the yellow metal has seen periods of significant volatility. Understanding what influcences gold price fluctuations helps to understand how to invest in gold. 

Understanding the Spot Gold Price

The price of an ounce of raw gold is also referred to as the spot price of gold. The spot market bases its price on the current volumes of futures contracts and their value at any given time. The spot gold price will fluctuate depending on market conditions, including supply and demand changes, inflation, or economic or political events. Prices can move very quickly. 

How is the Spot Price Set?

The spot gold price is set based on the current volumes of futures contracts at any given time. The two most important exchanges on the spot gold price are the COMEX and the Shanghai Exchange. The COMEX is responsible for approximately 70% of gold futures contracts, while the Shanghai Gold Exchange is the world's largest physical bullion market. As the COMEX is more influential in the futures market, it also holds more influence on the spot price.

Rise of Gold Investing in the Recent Years

There has been a rise in inflation globally due to the impact of the COVID pandemic. Gold can act as an investment and as insurance. When an economy isn't robust, people gravitate towards buying and selling gold to maintain personal financial stability. Investing in gold can help individuals to avoid losses caused by inflation.

Conclusion

The Gold price value will continue to fluctuate as long as the metal is traded. SuisseGold.eu constantly tracks and monitors the spot price of gold and offers gold bars and coins at highly competitive prices. If you plan to start investing in gold, understanding the market flow and cause of the fluctuations is crucial.