The gold market is a market where buyers and sellers concentrate on buying and selling gold.

The gold market provides spot and forward trading, and allows traders to trade in physical or option futures for speculation or hedging. It is an important part of the complete financial market system of all countries.

(B) the main body of the gold market

The main body of the gold market refers to the participants in the gold market.

From the international experience, participants in the gold market include international gold merchants, banks, hedge funds and other financial institutions, various legal entities and private investors, as well as brokerage companies that play a huge role in gold futures trading.

1. International gold merchants

International gold merchants are the market participants who have the greatest influence on the gold market.

International gold merchants have close ties with gold suppliers and demanders all over the world and play a decisive role in the pricing of gold.

The five most typical gold banks in London gold market are Lochiel International Investment Bank, Scotiabank, Deutsche Bank, HSBC and Credit Suisse First Boston Bank.

The five major gold traders are themselves a gold trader. Because they have extensive contacts with major gold mines and gold traders in the world, their subsidiaries have contacts with many shops and gold customers. The five major gold traders will constantly quote the buying and selling prices of gold according to their own conditions, but they are also responsible for avoiding the risk of gold price fluctuations.

2. Banks

Banks involved in gold trading can be divided into two categories. One is that they only buy, sell and settle accounts for customers and do not participate in gold trading. As representatives, the three major banks in Zurich act as brokers between producers and investors and play an intermediary role in the market.

The other is self-employed. For example, in the Singapore Gold Exchange (UOB), many self-operated members are banks.

3. Hedge funds

Hedge fund, also known as hedge fund or arbitrage fund, refers to a financial fund that combines financial derivatives such as financial futures and financial options with financial instruments and obtains profits by means of high-risk speculation.

It is generally believed that hedge funds are actually based on the latest investment theory and extremely complex financial market operation skills, making full use of the leverage of various financial derivatives to undertake high-risk and high-yield investment models.

Some large hedge funds often take advantage of the countless ties with the political, industrial and commercial circles and financial circles of various countries, first seize the changes in economic fundamentals, and use the huge funds under management to trade short, thus accelerating the changes in the price of the gold market and making profits from it.

(3) Various legal entities and private investors.

All kinds of legal entities and private investors in the gold market mainly include major gold mines, gold producers and other companies specializing in gold trading, gold products merchants specializing in gold purchase and consumption (such as various industrial enterprises), jewelry companies and private gold collectors, investment companies specializing in gold trading, and individual investors.

Therefore, many enterprises and private investors have different risk preferences and the purpose of buying and selling gold. Some risk-averse people hope to avoid risks and reduce the fluctuation of gold market price, while others hope that the price fluctuation is large enough to obtain high speculative income.

(4) Brokerage companies

A brokerage company is a brokerage institution that specializes in gold trading for non-exchange members and collects commissions.

Some exchanges refer to brokerage companies as brokerage companies.

In the gold markets of new york, Chicago, China and Hongkong, many brokerage companies don't own gold themselves, but only send their representatives to buy and sell gold for their clients in the trading hall and charge them commissions.