The price of gold usually refers to the daily London Afternoon Gold Fixing – the agreed upon closing price on the London Gold market – for one troy ounce of fine gold. The London afternoon price of gold is established through consensus by five members of the London Bullion Market Association. The current members which confer by telephone to set the fix are: Scotia-Mocatta, Barclays Capital, Deutsche Bank, HSBC and Société Générale.
Because the end of the trading day in London coincides with the opening of the trading day in the US, most gold transactions are tied to the price of gold as established by the 3:00 pm London Gold Fix. But, the actual price of gold changes minute to minute as it is traded in commodities markets throughout the world. These constantly fluctuating buy and sell prices are known as spot prices.
GoldFellow® posts the price of gold as stated by the London Afternoon old Fix on its website’s “Gold Price” page and uses that gold price to calculate its scrap prices for karat gold. Consumers should understand the the price of gold referred to by the gold fix is for pure (.9999) gold which has not been alloyed with other metals to produce jewelry. Jewelry and other fabrications made of karat gold alloys must first be melted and refined back to pure and the cost associated with that process is considered in the price of gold by karat for scrap gold jewelry.
Reference: http://en.wikipedia.org/wiki/London_gold_fixing – London Gold Fixing