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Gold Price: How are gold prices decided, and who fixes them? If you have this question in your mind then know it.

Gold Price: When you go to buy any gold jewelry, you must have seen the price of gold. Even when you go to the jewelry shop, you must ask the price of gold first. There is a slight change in the price of gold every day. But did this question come to your mind that how are the prices of gold decided and who decides them? Know the answer here.

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GOLD

The price at which you buy gold from jewelers is called spot rate. These prices are decided on the basis of Multi Commodity Exchange (MCX).

The price of gold on the MCX futures market is decided by collecting data on the demand and supply of gold in the Indian markets and keeping in mind the inflation situation in the global market. Apart from this, the futures market also coordinates with the London-based Bullion Market Association before fixing the price of gold. After this these prices are fixed. The prices on MCX are declared by adding VAT, levy and cost.

Economic and political decisions, both domestic and global, also affect the price of gold. For example, if the government in our country implements a new rule regarding gold import, then it affects the price of gold. At the same time, if the production decreases in a year in a country exporting gold, then this also affects the price of gold.

The spot price, that is, the price at which you buy gold from jewelers, is decided by the members of the bullion association of most cities together, at the time of market opening. Due to the prices being decided by the bullion traders of every city, a slight difference is also seen in their prices. The prices of gold are decided differently on the basis of carat.

The prices of gold all over the world are decided in the bullion market of London. This is the largest bullion market in the world. Before 2015, London Gold Fix was the regulatory body for gold which used to fix the prices, but after 20 March 2015, a new body London Bullion Market Association was formed. It is run by ICE Administrative Benchmark. This organization decides what the price of gold should be in collaboration with national level organizations associated with the governments of all the countries of the world.