How Often Does the Price of Gold Change?

Man tries to smuggle 250 gold bars into Bangladesh, held at airport

The spot price of gold is not a fixed value on any given day, it can fluctuate from one price to another several times a day. When you have gold to sell, it is important for you to check what the current gold price is. Since the U.S dollar is the global reserve currency and since there is only one gold market where the global trade of precious metals takes place, the spot price will be expressed in U.S dollars. This means that when you are buying or selling gold you have to convert the U.S dollar price to Australian dollars. The gold price in any Australian city will be the same gold price as the gold price Brisbane.

How often does the gold price really change over a 24 hour period?

Precious metal market are open from Sunday at 23:00 GMT and close on Friday at 21:15. Let’s assume trades are made every 4 seconds then the price changes over 20,000 times per day. That is just an assumption. For a more accurate calculation one has to account for the fundamental factors that have a significant effect on the gold price like investor demand and supply, global economics, politics, etc. These can change without warning. During the process of asking for bids or making them, adjustments are constantly being made. The back-and-forth movement of supply and demand creates the illusion that momentary changes in the price of gold matter.

Most of the time, demand for gold and other precious metals is based on investor sentiment. This can depend on any number of things.  Most investor buy gold as a hedge when the economy is poor. Assets like stocks and bonds, property and currency can lose their value dramatically in poor economic conditions, but the price of gold seems immune in similar conditions.

Sometimes, gold price Brisbane can fluctuate when news affecting the wider economy or the global balance of political and economic power breaks out. A good example is 23 June 2016, when UK voted to leave the EU. This stoked mass fears and panic leading to a sharp fall in the pound and other currencies. Investors rushed to exchange their currency for gold. Major world events usually lead to significant price fluctuations. Huge price fluctuations are rare but tiny ones occur every minute. Sometimes the spikes last longer and other times they seem to be momentary.  

Significant changes in the gold price often occur when there is a change in the trust put on fiat currencies.

Gold is less volatile than silver. The demand for this yellow metal is less elastic than silver’s. It is centred around gold’s monetary use. Gold is more of a long term investment than silver. Day traders may make some money by tracking tiny movements in the price of gold, but long-term investors look at investment policies in general. They buy gold and wait for the best opportunity to cash out. They don’t spend all their time studying charts and tracking live gold prices. Buying and selling gold doesn’t have to add to the daily stresses of life. You should have some peace of mind knowing your wealth is safe in gold and let the currency hoarders worry about inflation and market crashes.