Gold Prices

Gold Prices

 

commodity prices expressed in gold.

Under the conditions of gold circulation, with free circulation of gold coins and with bank notes redeemable in gold, prices expressed in national monetary units corresponded to gold prices. Under the gold bullion standard and the gold foreign exchange standard, there was no substantial gap between prices in national currency and gold prices. However, with the liquidation of the gold standard, the introduction in capitalist countries of paper money circulation with a nominal gold content in foreign currencies, the increasingly frequent devaluations, and the formation of a free gold market, commodity prices in national monetary units ceased to correspond to gold prices. This discrepancy can be explained by the differences in commodity price fluctuations and the market prices of gold, differences especially apparent at the time of devaluation and revaluation of currencies. For example, after the devaluation of the pound sterling in 1967, commodity prices in Great Britain slowly increased and gold prices sharply declined. Under present conditions, gold prices in any country can be determined through the actual commodity prices in the national currency and the market price of gold in the given currency. In domestic commodity turnover, however, the gold prices have no practical importance. In international trade there are instances of contracts in which commodity prices are fixed in gold monetary units and payment is made in the national currency on the basis of its actual gold price (the so-called gold clause).

M. G. POLIAKOV

References in periodicals archive ?
KARACHI -- The per 10-gram and one-tola gold prices on Saturday hit a five and half years peak at Rs49,628 and Rs57,900 after a jump of Rs257 and Rs300, respectively.
Summary: New Delhi [India], Dec 28 (ANI): Gold prices on Thursday rose to their highest level with gains from the previous day, as the dollar remained subdued.
By Mohammad Al-Enezi KUWAIT, Dec 24 (KUNA) -- Gold prices have rebounded in December following a two-month drop triggered by a looming decision by the US Federal Reserve to raise interest rate.
Summary: Dubai gold prices jump by Dh2 per gram to Dh157 from September 28
Gold prices have surged $100 an ounce over the past seven weeks, closing Friday just under $1,300 an ounce, settling at their highest price in almost three months.
With gold prices moving up to about Rs 31,500 per 10 gm in the spot market, bullion traders and analysts said the Rs 32,000 per 10 gm mark may well be breached by Diwali.
The collapse in the value of the pound after the UK's decision to quit the EU has pushed gold prices even higher, with figures recently revealing the price of the yellow metal has soared 45% so far this year in sterling terms.
Apex said that as metal prices started to recover toward the second quarter, gold prices in the first half averaged $1,247 per ounce or 3 percent higher year-on-year.
Muscat: Softening gold prices are triggering a buying spree in Oman, said traders who have brought in more stock to meet the demand.
The revenue tax rate is set at the level of 1% and up to 20% of companies' gross income, depending upon world gold prices.
Gold prices are poised to drop next week, with several analysts saying an improving US economy could boost the US dollar, putting pressure on the metal's safe-haven investment allure.
ISLAMABAD -- Gold prices are again witnessing an upward trend due to global cues after nose-diving in recent times and the fresh price of 24K per Tola gold is Rs54,600.