In the previous editions of the Market Overview, we described the factors driving the price of gold along with the ones that do not affect it. We showed that the gold market is one of the most complicated markets in the world. Indeed, its structure is not very transparent, as gold is traded in many markets all over the word, and the majority of its volume is exchanged in the over-the-counter (OTC) markets. This is why analysis of the structure and mechanics of the gold market is so valuable.

In this edition of the Market Overview, we will examine how the gold market really works and how the price of gold is determined. We will describe the structure of the gold market and how it functions, focusing on the U.S. futures market and the London spot market, the two most important gold marketplaces in the world. From this analysis investors should come to understand the gold market and its true drivers, as well as learn a few practical investment clues.