Why the US Dollar is the Global Benchmark for Gold
Historically and practically, gold trades worldwide almost exclusively in US Dollars (denoted by ticker symbol XAU/USD). The international settlement mechanism was established by the Bretton Woods conference and continues today through the London Bullion Market Association (LBMA) and the Chicago Mercantile Exchange (COMEX).
When central banks, sovereign wealth funds, and private institutional investors hedge against currency depreciation or inflation, transactions are executed against the US Dollar spot benchmark.
Conversion Constants Used on This Page
- 1 Troy Ounce = 31.1034768 Grams
- 1 Kilogram = 32.1507466 Troy Ounces = 1,000 Grams
- 1 Metric Tonne = 1,000 Kilograms = 32,150.7 Troy Ounces