1.London Gold Market

【London Bullion Market Association: http://www.lbma.org.uk/pages/index.cfm】


With a history that spans over 300 years, London is the head of the world's four major gold markets and with the largest spot gold market in the world. Investors need to be aware that the Loco London Gold (LLG) refers to gold transactions around the globe which involve no fixed trading venue or transaction time, rather than transactions or settlements conducted in London. Contrary to gold futures in the U.S., this type of transaction is known as "spot gold".

In London, the gold market is mainly formed by the five major gold dealers and companies eligible to buy gold from the dealers as well as other various manufacturers and sales networks.

Based on the buy and sell order, gold dealers’ quote their bid and asking price. The most common way to trade London gold does not require the settlement of solid gold, however, when the spot gold contract they are holding matures (or expires), clients need only pay the cumulative interest at the agreed interest rate and gain in profits (or losses) according to the price fluctuation at the closing position.

In summer, the London gold market is open from 15:30-00:00, Beijing Time. In winter, it is open from 16:00-01:00.

2.New York Gold Market

【New York Mercantile Exchange : http://www.cmegroup.com；】


The U.S. gold market was further developed in the mid-1970s with the development of the New York Mercantile Exchange (NYMEX under the CME Group) becoming the world's largest gold futures trading center. Trading futures is the most distinguishing feature of the New York Exchange as the prices on the futures market have a great impact on the spot gold price.

In the New York gold market, future contracts are denominated in even-number months which affects the gold spot price. As a contract begins to expire, as it draws closer to the next roll-over period, the price of gold in that specific contract will tend towards the price of the following roll-over month.

Currently, gold products being traded at the New York Mercantile Exchange include: gold futures, mini futures, gold funds and gold options. Since the New York gold futures market is dominated by large hedge funds and institutions, the huge trading volume attracts various investors, granting New York gold market dominance over market liquidity.

In summer, the New York gold futures market is open from 20:20 to 2:30 (Beijing time) the following day. In winter, it is open from 21:20 to 03:30 the following day.

3.Hong Kong Gold Market

【Hong Kong’s Chinese Gold & Silver Exchange Society(CGSE) : http://cgse.com.hk/】

Having a history of over a hundred years and being internationally rated as the third-largest gold market, the Hong Kong Gold Market offers the widest range of gold products and is the only gold market open on Saturday.

Hong Kong’s competitive edge has attracted the five major gold dealers in London and the three major banks in Switzerland, which set up branches in Hong Kong successively and formed a new generation comparative to the London gold market. CGSE is the most authoritative gold exchange centre in the Asia-Pacific region, all the trading activities including solid gold and London gold contract are subject to the supervision under CGSE.

As one of the four major gold markets, and being the main gold market in Asia, the Hong Kong gold market receives close attention from other trading markets. In the international community, the Hong Kong gold market fulfills the time gap when New York and Chicago markets are closed and when the London market reopens, becoming an indispensable part of the international gold market. In addition to the free foreign exchange policy, Hong Kong’s legal and financial frameworks bridge the gap for Sino-foreign trade and economic exchange. For investors in mainland China, Hong Kong is the best place for bullion investment.

On December 5 2011, the CGSE modified the trading hours as follows:
Trading hours for open outcry: 09:00 - 12:00; 14:00 - 17:00;
Trading hours for electronic transactions: 08:00 until 03:30 the following day (including Saturday morning).

4.Zurich Gold Market

【UBS : http://www.ubs.com】

Zurich gold market is positioned after London in the international gold market. Having developed after World War II, Zurich gold market, thanks to its neutral political stance and distinctive banking system, has become one of the largest exchanges and one of the largest storage centers for private gold. Thus, Zurich gold market is one of the four largest gold markets.

The Zurich gold market has no formal organizational structure, but is represented by the three largest banks in Switzerland: the Swiss National Bank, Credit Suisse and Union Bank of Switzerland.

The Zurich Gold Pool is founded on the basis of informal consultations of the three major banks above, independent of the jurisdiction of the government. The three major banks are not only the trading markets of the spot gold, but also participate in investing activities. At a certain time of each trading day, Zurich gold market determines the daily gold price according to the market price. Zurich's official gold price is set by market fluctuations, though it is not restricted by limit up or limit down.