Who Determines the Price of Gold?

How and by Whom Is the Global Gold Price Set? The global gold price is set by the IBA (ICE Benchmark Administration), an independent organization whose members include the London Bullion Markets Association, which is overseen by the Bank of England. It is authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. They manage the world's precious metals markets through a global data collection platform. They were the first to digitize and index exchanges and enable the rapid flow of global data through APIs using blockchain technology. They have connected global markets with transparency and ensured efficient pricing. By enabling gold trading from home through clearinghouses and platforms in five countries, they have brought transparency, discipline, security, and fair market dynamics to the gold markets through truly balanced pricing. The IBA (ICE Benchmark Administration) operates price-setting tools using an electronic auction system secured by blockchain technology. Thanks to the IBA, the global gold price is currently fixed and published twice daily. Many investors who are members of the LBMA also have the opportunity to set this price. In global gold markets, the supply, demand, and futures financing of gold by the largest reserve holders registered with the LBMA determine and balance the daily gold price. Members of the London Bullion Market (LPMCL) have a primary say because they hold the largest reserves. They are connected to London, open trading sessions, and expect prices from London when trading. Governments or central banks cannot set the price of gold, but they do balance the global market. This is because the value of your fiat currency is primarily tied to gold, which in turn is tied to the dollar and indirectly to foreign exchange markets. Therefore, the global gold price is determined by supply and demand.
The global gold price per ounce has been set by the Rothschild family bank in London for 100 years, since 1919. Representatives of the five major bullion banks, members of the London bullion market, hold two meetings daily, one in the morning and one in the afternoon, to announce a fixed price based on the supply and demand of one ounce of gold. The dynasty currently controls 164 banks worldwide. Their estimated wealth is $500 trillion. The dynasty's motto is Concordia, Integritas, Industria, meaning harmony, honesty, and diligence. It is undeniable that these principles discipline the gold market today. If not for discipline, who would? After 2015, when the global trend toward fixing gold became a necessity for national economies, the method became even more global. Prices were determined in active sessions attended by members from every country, and transactions were conducted in clearinghouses and trading rooms. This was achieved by simultaneously collecting demand from global exchanges through the participation of LBMA members, who are also overseen by the Bank of England. This was achieved by providing convenience and transparency, allowing a Malaysian member, a Turkish member, etc., to place orders through the provided interface. Auctions now begin daily in London at 10:30 am and 3:00 pm for gold and 12:00 pm for silver. The price is determined in 30-second rounds, and the price is announced twice a day at the end of each session: the LBMA Gold Price in the morning and the LBMA GP in the afternoon. All global exchanges trade gold at this price. Whether they choose to do so, they would immediately suffer significant losses. If the price is high, they are flooded with gold due to a global sell-off; if it's low, they are suddenly left without it. Market participants from around the world, including producers, refiners, the investment community, banks and central banks, manufacturers, jewelers, and other consumers, participate in the sessions through direct or indirect membership. They trade during the IBA Gold and Silver Auctions and use the benchmark prices as reference prices. The ability to trade and reference a single, transparent price established by an independent, regulated benchmark administrator (IBA) provides significant advantages to the gold market. The LBMA Gold Price and LBMA Silver Price facilitate spot, monthly average, cash settlement, position swaps, fixed-float swaps, options, and other derivative transactions critical to price risk management. Gold price determination also provides the framework for all global financial instruments. All of these operations are the success of the IBA. Gold prices are still fixed by twice-daily meetings held in countries, ensuring market stability and security; otherwise, no one would sell their gold! This figure also clarifies the negotiations between buyers and sellers on all global gold exchanges. This is why the figure above is constantly volatile. Buy and sell orders are constantly being placed around the world, new ones are arriving, and prices fluctuate instantly. The absolute regulation of such a market is essential for global prosperity. Therefore, global demand can now be instantly visualized through the buying and selling volumes and prices of each country. Major players are always ready within the LBMA to flood those in need with gold at the current price. This is the essence of global regulation; transparency is essential.

Why is the gold price fixed? Because the gold price shapes market trends, it requires constant adjustment in the daily market, regardless of fluctuations. This price fixing is vital for global economic stability, and investment decisions are made based on stable gold prices, which helps predict supply and demand. While most gold purchases are made at the fluctuating spot gold price, larger members of the gold industry, such as banks, miners, and refiners, use the fixed price as a reference. The fixed price is very useful for those interested in the bullion market; this guide price applies to investors or day traders who decide when to buy and sell gold. How are the auction sessions where the gold price is determined conducted? Who participates? Auctions are conducted in 30-second rounds. At the beginning of each round, the IBA publishes the price for that round. Participants then have 30 seconds to enter, modify, or cancel their orders (the amount of gold/silver they wish to buy or sell at that price). At the end of each round, order entry is frozen, and the system checks whether the difference (imbalance) between buy and sell orders falls within the imbalance threshold (typically 10,000 ounces for gold and 500,000 ounces for silver). If the imbalance is outside the threshold at the end of the round, the auction is not balanced, a new price is set, and a new round begins. If the imbalance is within the threshold, the auction ends and the price is set. Any imbalance is shared equally among all direct participants (even if they haven't placed an order or logged in), and each participant's net volume is traded at the final price. The final price is then published in US dollars as the LBMA Gold Price or LBMA Silver Price. There are two categories of participants in the IBA Precious Metals auctions in London. 1) Direct participants manage their orders in the auction through the ICE Trading Platform and execute their trades in the clearinghouse at the end of the auction. 2) Indirect participants are clients of the direct participant. They manage their own orders in the auction through the ICE Trading Platform and, at the end of the auction, execute a bilateral transaction with their direct participants. Direct participants share the imbalance, while indirect participants do not. Prices during the auction are determined by an algorithm that takes into account current market conditions and auction activity. Each auction is actively monitored by IBA staff.

Who are the major players that are direct members of the London Bullion Association? 1*) Bank of China Limited 2*) Citibank 3*) Coins 'N Things Inc. 4*) DRW Investments, LLC 5*) Goldman Sachs 6*) HSBC Bank 7*) Jane Street Global Trading, LLC 8*) JPMorgan Chase Bank 9*) Koch Supply & Trading LP 10*) Marex 11*) Morgan Stanley 12*) Standard Chartered Bank 13*) StoneX Finance Ltd 14*) Toronto-Dominion Bank 15*) Virtu Financial Global Markets, LLC

In what currencies is the price of gold per ounce announced? Gold auctions are priced in US dollars, and the auction is conducted exclusively in US dollars. No other currencies are used. Foreign exchange markets maintain parity with the dollar, and all markets operate in harmony and balance.

What is the relationship between the price of an ounce of gold and the price of oil? While there is a positive correlation between the price of an ounce of gold and the price of oil, there is no correlation. This has been proven and published through scientific research! You can access the study, published in November 2024, >> Source here.

Is the global gold price per ounce being manipulated? Who is manipulating the price of gold per ounce, and why? Of course, the price of gold is being manipulated, right? Many banks (the major players) are being penalized for this. Example: >> Click on the TradingView logo on the chart and scroll to the morning of November 25, 2024, in the full-page map that opens. From the chart's sharp, angle-free projection, you'll easily see that bullion and paper gold prices fell immediately after the US stock market opened. Why did this decline, unprecedented in nearly nine years, occur, and who caused it? Who is responsible? Why did some of those who closed the spot market by buying gold at $2,716 per ounce on Friday, November 22nd experience paralysis in their homes on Monday morning? What happened in the 25 minutes between 8:55 and 9:20 a.m. on Monday, November 25th? When the price of gold suddenly dropped to $37 per ounce, 26,450 units were sold, yielding a total of 82 tons of paper gold. The market was flooded with 82 tons of paper gold. If you can see this latest example on the live chart of the global gold market, you're ready to invest. But don't forget to help ifaw.org first!