The last record in gold prices is driven by a strong purchase during the daily auctions, in an indication that the large investors in the market still strengthen their belongings, even in the light of these standard levels. The recording of the purchase offers more than 400,000 ounces of gold in the opening round for the auction in the afternoon the biggest size of its kind since September 2019, according to the analysis of “Bloomberg” for the information of the Intercontinental Outwear Index, which manages these auctions. This purchase activity contributed to the payment of prices, as the price of gold rose from $ 3116.60 per gram when the auction started at 15:00 in London, to $ 3143.15 when closed at $ 15:11. Within one hour, Gold recorded a new record, which continued with the rise in prices up to $ 3244 yesterday. Gold purchases usually connect traders and analysts between the major purchase or sales activity in these auctions and central banks, which was one of the most important engines for high prices for $ 3,000 per gram. However, other groups of investors in the market were also a large buyer, as the boxes distributed on the stock exchange have added 5.8 million ounces of gold since the beginning of this year, according to the data collected by “Bloomberg”. The daily auction system was previously known as “The Fix”, and it is covered in a room with wooden panels in NM Rothschild & Sons offices, and this system for daily auctions has determined the reference prices of precious metals for more than a century. The auction is run electronically these days, and its importance has dropped after the major banks were reluctant to participate in determining the reference prices in the wake of the scandal of manipulating the price of labor (the interest between banks in London), as well as the growing liquidity in other parts of the market. Nevertheless, the auction is still an important reference indicator used in gold contracts around the world, and it is also the opportunity to raise high liquidity for those who want to implement major offers. The price of the reference gold offers clients who participate in the auction orders to buy or sell at the reference price, then the price is gradually changed until the sizes of purchase orders equals the sales orders. Yesterday, the first round of the auction of 408,365 ounces – approximately $ 1.3 billion – appeared to be in exchange for selling orders that were no more than 73871 ounces. After 19 rounds and a significant increase in prices, the quantities are equal between both sides of buying and selling about 360 thousand ounces each by 15:11. Central banks have significantly strengthened purchases in the gold market since the imposition of sanctions on the Russian central bank during 2022. Analysts expect the high purchase to continue this year, in light of the trade war launched by Donald Trump, which will continue to continue their reserves.
Daily Gold Auctions leads the standard price
