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The gold market is highly
dynamic and trading of gold is
done on an international level
and the rate of gold is also
universal in nature.
Internationally cost of gold,
silver as well as other precious
metals fluctuate but the
maximum fluctuation is seen
in gold as the gold markets
have more customers with the
metal being more in demand.
One of the main factors thatdetermine the price of gold on adaily basis is the rate of thedemand and supply. The rise andfall of one or the other can result ineither the gold rate rising or falling.
Basically gold and silver areprecious metals that haveextremely difficult and expensiveprocesses of mining. So the firstreason is that mining the metalsbeing an expensive process raisesthe cost of the metals. The increasein its cost is further raised by thecost of the recycling process ofscrap that is got from the miningprocess. All these factors are takeninto due consideration whendeciding upon the rate of gold for aparticular day.
The fixing of the gold price per
gram is done by a panel of 5
members who belong to different
groups of companies, but all of them
related to gold markets, finance and
trading. Every day the price of gold is
fixed twice and the timings are at
10:30 am and at 3:00pm. All the five
who decide on the rate are member
of the London Bullion Market
Association and hence have been
given the power to set the today’s
gold rate.
