The dynamics of the world market of gold and the current geopolitical processes. Part 2. The analysis of behaviour patterns of the main gold market participantsAbstract
The article analyses the behaviour of the participants of the world gold market. Special attention is paid to the London gold fixing and its replacement by the London electronic auction in an attempt to establish the benchmark price of gold under the influence of short-term geopolitical impulses. The author puts forward a hypothesis that different impulses of geopolitical processes, their frequency and the level of manifestation influence differently the dynamics of the world gold market. These factors determine the movement and distribution of gold reserves in different geographical places, ‘safe havens’, and can lead to an increase the number of gold bars, futures contracts or, on the contrary, to get rid of them. They can determine the fluctuations of the world price of gold. The author substantiates the idea that short-term geopolitical disturbances have an impact on the process of revaluation of the precious metal. The second part of the article aims to identify the main regularities of the impact of geopolitical impulses on the behaviour of participants of gold pricing. This aim is achieved by using observation, analogy, comparative and retrospective analysis. The author analyses the behavioural reaction of participants of the London gold fixing and the London electronic auction to the emergence of new centres of military conflicts and "colour revolutions, as well as the intentions of some world leaders to break the existing military and strategic balance of forces in an attempt to introduce a new world order. The author determines the conditions, which allow participants of the world gold market to become subjects of modern geopolitics.