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How is a Monex spot price calculated?
Spot Prices represent the midpoint between Monex bullion bid and ask prices per ounce. A Current Spot Price is calculated as a bid/ask average, based on a virtual non-stop price discovery process of active comparable commodity transactions. They include dealer and exchange markets throughout the world. Typically, markets track each other when active, but physical delivery price in regards to locations can present anomalies, especially if transportation is slow, costly or restricted. If open, dealer and exchange markets fluctuate throughout the day. For example, if the historical price per ounce of a COMEX/NYMEX futures contract or the London dealer market were to fluctuate up a dollar, typically the Spot Price gets calculated up a dollar. Obviously, market prices can fluctuate irrespective of a particular historical transaction price reported.
What are spot prices?
Origins of SPOT represented the current month, rather than transactions for future delivery, deriving from on the spot. Common practice of the metals industry is to publish a bullion benchmark market value, spot price, which most universally is a particular trading day’s final settlement price per ounce of the COMEX/NYMEX futures exchange spot month. At other times of the day, metals dealers assess active trading on world markets to infer what they believe a benchmark spot price is. Monex publishes a current live spot price throughout its 11-hour trading day.
Is The Gold Rate In The Us Different From The Gold Rate In Other Countries
Yes, the price of gold, specifically the spot gold price, will be different from one market to another, but only marginally so. Youll actually pay the same regardless of your market. While there is a 24-hour gold market, its closer to Forex than the stock market in terms of performance. However, with that being said, there is usually a very close correlation between the gold rate for one market and the gold rate for another.
This all said, since the year 2000 gold has performed better vs some fiat currencies like the Argentine peso vs other stronger less rapidly debasing fiat currencies like Swiss francs or New Zealand dollars for instance. See various annual price performances of Gold vs Fiat Currencies below.
GOLD vs FIAT CURRENCY KEY
How Is The Price Of Gold Moved By Interest Rates
Put simply, interest rates are the cost of borrowing money. Lower interest rates imply that it would be cheaper to use the countrys currency in order to borrow money. Interest rates tend to have a strong impact on economic growth. Central banks use it as an important tool to make decisions in regards to monetary policies.
It is common for central banks to decrease interest rates if they lead to better economic prospects. Lower interest rates result in increased consumption and investment by the local population. The disadvantage is the low interest rates decrease currency and bond yields, both of which positively influence gold prices.
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Whats The Price Of Gold Per Ounce
The price of Gold can fluctuate based on market conditions, supply and demand, geopolitical events and more. When someone refers to the price of Gold per ounce, they are referring to the spot price. The spot price of Gold is always higher than the bid price and always lower than the ask price . The difference between the spot price and the ask price is known as the premium of Gold per ounce.
Whats The Difference Between An Ounce And A Troy Ounce
The troy ounce is the standard unit of measurement used for precious metals like gold and silver. A troy ounce, when converted into grams, is equal to 31.103 grams, which is heavier than the traditional ounce, equal to 28.349 grams.
A troy ounce is approximately 10% heavier than a regular ounce. An avoirdupois ounce, or traditional ounce, can be converted into a troy ounce by simply dividing it by 0.91. However, for every troy pound, there are only 12 troy ounces, making a troy pound lighter than a regular pound, which is 16 ounces. It can be confusing, but this is the standard for measuring precious metals like gold and silver.
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Us Economic Data To Watch
Thursday, June 30 at 830am EDT // PCE Price Index
Were placing a marker down this week on the Thursdays PCE release not in anticipation of a key data update, but mostly as a signal to look out for volatility in the marketplace around gold, the Dollar, and/or US Treasuries. Aside from the clear signals last week from Powell and others that the FOMC policy path is essentially locked-in for the summer a trailing PCE report is never likely to spring a surprise on the market that the earlier CPI data didnt deliver. This reality, though, has never stopped investors and traders from reacting to the release of similar number from the PCE or the financial medias coverage of what they know is not new information. Be on the lookout for volatility around gold on Thursday morning: headlines about high inflation might goose gold prices higher, as is always possible
Friday, July 1 at 10am EDT // ISM Mfg Index
What Is The Gold Spot Price
Spot prices represent what a commodity is trading for at any given moment. It is the live gold price in real time.
This price is used by gold refiners, miners, financial institutions, and gold dealers. It’s how they determine pricing for gold bullion.
In other words, the gold spot price is a benchmark for wholesale transactions. It’s the amount a wholesaler will charge for a unit of physical gold per ounce before any markups or premiums.
Gold derivatives often track with the spot price.
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What Is The Gold/silver Ratio
It is the number of ounces of silver required to buy one ounce of gold. Silver and gold price chart history and the fluctuating gold/silver ratio is often used by investors to analyze how much silver is worth in comparison to gold, to evaluate if one of the two is overpriced at any given time. This enables investors to determine whether it is a favorable time or not for either buying or selling one of these commodities.
How The Price For Live Spot Gold Is Calculated
Gold has a benchmark price that is set every day. The most common entities that make use of these benchmarks include producer agreements and commercial contracts. The benchmarks are based on the spot markets trading activity on decentralized OTC or over-the-counter markets.
OTC means that the prices are not set by formal exchanges and are negotiated privately by participants over the phone or electronically. While prices for spot gold are not regulated, financial institutions still play a valuable role by serving as market makers, providing an ask price and bids for the spot market.
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What Factors Can Make The Spot Price To Go Up Or Down
Many factors influence the habits of buyers and sellers of precious metals. Silvers price tends to be more influenced by industrial demand, due to the many applications for which it is used . Gold has some industrial uses, but is overwhelmingly purchased for investment . The catalysts that have the greatest impact on spot prices are:
Why Do People Say the Price of Gold Is Manipulated?
The short answer: because it is. A short answer, however, may not be a simple answer, and thats the case here. Many, many words have been written about manipulation of the gold price. There is far too much available material to hit more than just a few of the high points.
The short answer is correct because ALL markets are manipulated, according to the most basic definition: trading with the intent of influencing a price and succeeding. Such an effort may be illegal, as with the LIBOR rate-fixing scandal. Or it may be legal, such as George Soross attack on the British pound that made him a fortune. Or it may fall into the gray area in between, such as when short sellers stage a coordinated attack on a companys stock price.
These big banks are in business to make money, period. It is to their advantage to push prices around to ensure that they make a profit. Because of their size, and the size of their contracts, they have a huge impact on the supply/demand equation, where the buyer of 10 coins from his or her local dealer has none.
Are Prices For Gold The Same Across The Glove For Every Ounce
A single ounce of gold will be similarly priced throughout the world. Large-scale transactions usually deal in US dollars because of its popularity. The value of gold heavily depends on the countrys currency and follows an inverse relationship. It is typical for stronger currencies to have a lower value of gold, while the opposite is true for weaker currencies.
The most frequently used unit to quote the prices for gold is the ounce per US dollar, although it is common for OTC markets to utilize other options depending on the situation.
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Does The Gold Market Operate 24 Hours Per Day Around The World
Yes, gold is bought and sold at all hours of the day and night, all around the world. You can get the current gold price per ounce at midnight or sunrise, lunchtime or any other time you need it.
Gold is traded 24 hours per day to ensure that all comers have access to this investment market, including banks, governments, other financial institutions, and investors just like you. The market is active around the clock to guarantee that you can always get an accurate gold price per ounce.
Understanding The Dow To Gold Ratio
The Dow to gold ratio is a measure of the stock market in comparison to gold. The Dow gold ratio been observed to move downwards in the wake of panic associated with inflation and deflation. During the Great Depression, the Dow to gold ratio stood at 1:1. In January 1980, both the Dow Jones Industrials and gold prices sported a handle at 850, thus reaching 1:1 ratio.
As an example, a 20,000 Dow and $20,000 gold price may seem impossible to achieve today but when panic spreads in the market, price extremes on either side could be reached, sometimes even simultaneously.
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How Are The Premiums Over Spot Calculated Are They The Same For All Gold Products
Premiums vary depending on the product.
Generic gold items usually have lower premiums. A more intricate design on a gold bar or gold coin will raise the premium. Rare or limited edition products will also have high premiums.
The reason for this is twofold. Highly artistic gold products are more costly to manufacture. Buyers are also willing to pay more for such items.
What Are Gold Futures Contracts
Futures contracts are agreements to buy or sell a commodity or asset at a future date. The amount being exchanged and the price are specified in the contract.
There are two main uses for gold futures contracts. They allow gold miners and dealers to hedge against falling prices. Futures also allow investors and large institutions to speculate on the gold price.
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What Other Types Of Gold Bullion Products Should I Consider Buying
We make a market in a range of the most popular bullion bar and coin products. You can buy Gold Krugerrands, buy Gold Eagles, buy Gold Maples, buy Gold Philharmonics or indeed buy Gold Britannias. If you wish to own a smaller coin and the divisibility benefits of smaller gold coins you can buy Gold Sovereigns.
High net worth investors frequently opt to buy Gold bars and Gold bars . Larger gold bars are normally stored in our Secure Storage vaults internationally.
Why Can’t I Buy At The Gold Spot Price
The gold spot price is the cost at which a product can be executed and delivered on right now. It does not consider the premium or added cost of a bullion coin well beyond the market estimation of the metal content the commodity encompasses. A manufacturer marks up the price due to the minting costs and sells it to a dealer. A dealer thereafter further marks up the gold bullion prices in order to account for distribution costs and a minimal dealer fee and sells it to individual buyers and investors. At Bullion Exchanges, we offer gold at the lowest possible markup from the spot price.
We may also occasionally run deals selling gold at spot price at our discretion. Be sure to subscribe to our newsletter to stay up to date with any special offers.
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What Is The Ounce Of Gold Price
The gold spot price is typically reflecting a troy ounce of gold.
The spot price is the value of one troy ounce of gold on the over the counter market. However, understand that gold is not always sold by the ounce, although that is one of the most common methods. Gold can also be sold by the gram and by the kilo . So, by knowing the gold price per ounce, you know the baseline of what youll typically pay for one troy ounce of .999 fine gold from a bullion dealer .
Gold As An Investment
Gold is available for investment in the form of bullion and paper certificates. Physical gold bullion is produced by many private and government mints both in the USA and worldwide. This option is most commonly found in bar, coin, and round form, with a vast amount of sizes available for each.
Gold bars can range anywhere in size from one gram up to 400 ounces, while most coins are found in one ounce and fractional sizes. Like other precious metals, physical gold is regarded by some as a good way to protect themselves against the ongoing devaluation of fiat currencies and from volatile stock markets.
Buying gold certificates is another way to invest in the metal. A gold certificate is basically a piece of paper stating that you own a specified amount of gold stored at an off-site location. This is different from owning bullion unencumbered and outright because you are never actually taking physical ownership of the gold. While some investors enjoy the ease of buying paper gold, some prefer to see and hold their precious metals first-hand.
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Live Gold Spot Price Chart
The precious metals market is always fluctuating. Every second, the price of gold either rises or falls in response to the market. This is referred to as the spot prices and relates to how much one raw ounce of a particular metal sells for on the market at a certain moment in time. For your convenience, we have provided charts and tools to help you keep up to date with the spot price of some of our most popular precious metal offerings in real-time. From a microscopic one-hour view to data gathered over the course of a year, our goal is to give you the tools you need to make the most informed investment decisions possible.
Simply navigate to the list below and click on the metal of your choice to access its chart. Then, click on a time period in the charts upper section to see its data. You can also scroll over the chart itself to see price points at specific moments.
Classification Of Gold As A Precious Metal
Rare metals have higher economic potential than common metals. Of the five precious metals, gold has the largest market. Some investors refer to gold as a monetary metal because of its use throughout the history as a form of currency. Gold as an asset has a high store of value because it maintains its value without degrading. The yellow metal is also used in industrial units because of its desirable properties such as being a good conductor, malleability, and resistance to corrosion.
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How Do Interest Rates Move The Price Of Gold
In simplest terms, interest rates represent the cost of borrowing money. The lower the interest rate, the cheaper it is to borrow money in that countrys currency. Rates have an impact on economic growth. Interest rates are a vital tool for central bankers in monetary policy decisions. A central bank can lower interest rates in order to stimulate the economy by allowing more people to borrow money and thus increase investment and consumption. Low interest rates weaken a nations currency and push down bond yields, both are positive factors for gold prices.
What Is Silver Bullion
Silver bullion refers to a Silver product that is valued by and sold mostly for its metal content and does not contain any numismatic or collectible value. Silver bullion often appears in the form of bars, rounds and Sovereign coins that carry a face value and are backed by a government. These products are most commonly categorized therefore as either .999 fine or .9999 fine Silver bullion, meaning the product is either 99.9% or 99.99% pure Silver.
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What Affects Gold Prices
Like all markets, gold prices are subject to forces of supply and demand. When it comes to gold, supply is affected by trading trends as well as by mining companies digging up more gold that they can put into the market. One of the key factors impacting demand is the current market sentiment on inflation. When inflation rises, the value of the dollar goes down, and some investors flock to gold in hopes that it serves as a stable store of value.
