Benchmarks, over-the-counter trading, futures and the difference between a reference price and a commercial term in a physical transaction.
Reference prices and transactions are different things
A published benchmark reflects trading in a particular market at a particular moment under particular conditions. It is a reference point, not the terms of any specific physical transaction.
A physical transaction involves a specific product, specification, quantity, location, verification arrangement, documentation set and delivery structure. Each of those affects what the parties agree, which is why commercial terms are discussed directly rather than published.
Where trading happens
Gold trades over the counter between institutions, on futures exchanges, through exchange-traded products and in physical markets that differ considerably by region. These markets interact, but they are not the same market and do not always behave identically.
What moves the picture
Real interest rates, currency movements, central-bank behaviour, investment flows and physical demand from major consuming markets all contribute. Attributing a movement to a single cause is generally a simplification applied after the fact.
Sources and references
- — General market structure; no price data is published on this website
This article is general market and educational information. It is not investment, legal, tax or financial advice, and it is not a commercial offer. No prices or indicative values are published on this website; commercial terms are discussed directly with qualified counterparties.
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