Gold is the world's oldest monetary metal and remains the primary safe-haven and reserve asset in global markets. It trades around the clock across London (OTC/LBMA), New York (COMEX futures), Shanghai (SGE), and Dubai, with the London Bullion Market Association (LBMA) Gold Price serving as the official twice-daily benchmark.
Unlike industrial metals, gold has minimal consumption relative to above-ground stock — nearly all gold ever mined still exists in vaults, jewellery, and reserves. This makes gold's price behave more like a currency or store-of-value asset than a consumable commodity.
Key Gold Price Drivers
- US real interest rates — gold is non-yielding, so it competes directly with Treasury yields
- US dollar strength — gold is priced in USD; a weaker dollar typically supports higher gold prices
- Central bank buying — official-sector purchases (notably China, India, Turkey, Poland) have been a major demand driver
- Safe-haven demand — geopolitical tension and financial-system stress increase flows into gold
- Jewellery and retail demand — India and China together account for over half of global physical demand
- ETF and investment flows — gold-backed ETF holdings (e.g. SPDR Gold Shares) are a widely watched sentiment indicator