Gold Trading

Gold Trading Defined and Explained

Almost every exchange of any note around the globe has some type of gold investment, whether in stocks or futures or some other instrument based on a component of the gold market.

Two of the most important gold trading centers are in London and New York. The London gold market is one of the oldest in the world and is the largest market for physical gold. Since September 12, 1919, the “London gold fix” has been the gold price standard used in contract arrangements around the world. Today, the gold fixings take place at 10:30 a.m. and 3 p.m., providing the “official” gold price used by producers, consumers and central banks.

The major gold futures exchange for U.S. traders is the Comex division of the New York Mercantile Exchange (NYMEX), which began trading gold futures on Dec. 31, 1974, on the first day U.S. citizens were allowed to own gold after a ban of more than 40 years. Other important gold markets are located in Tokyo, Sydney, Hong Kong, Shanghei, Singapore, Dubai and Zurich. So at any time of the day or night a current gold price is being established somewhere