How is gold traded internationally
Despite the size of the gold market, how it is traded is often poorly understood. The gold market is inherently global and gold is traded continuously throughout all time zones. Gold’s disparate trading centres around the world are linked as market participants drive convergence of local gold prices through arbitrage activity. Gold futures – Is a contract agreement for the delivery of gold in the future at a set price. Investors use this to manage the price risk. Investors use this to manage the price risk. Since gold futures contracts are traded at centralized exchanges, these contacts offer more leverage and flexibility than trading commodities themselves. There are five main precious metals openly traded on various exchanges, gold is the biggest market. Gold is sometimes referred to as monetary metals as it has historical uses as a currency and is seen as a store of value.