The Gold Market Price Linkage Mechanism At Home And Abroad

As one of the oldest nations, Chinese people aspired gold as symbol of power and wealth.But the gold market has just been shaped for ten years. The establishment of the Shanghai Gold Exchange in2002saw the beginning of this market while the found of gold futures saw another milestone. One of the benefits of being a late starter is owning a lot of experience to learning from. Perhaps inevitably the public will compared the local market with those global ones. The theoretical research always lagged compared with the rapid growth of market. This paper will dig into the relationship between Chinese gold market and global authoritative markets.There are altogether five parts in this paper. The first part will tell some background and structure of this study. The second part is a brief introduction of four typical gold markets. The third part introduces some classical price theories of gold futures and the conductive process of price as well as the factors it contains. The forth part is an empirical study through several models. The fifth part will give an conclusion and suggests.This paper argues that the COMEX gold futures have played an important role in benchmarking while London spot gold is a pricing machine. China’s gold futures market function has not fully developed.