In basic economic general knowledge, the international benchmark value of gold is traditionally determined in which city that hosts major bullion trading and price fixing sessions?

Introduction / Context:

Gold is a globally traded precious metal, and its price is monitored by investors, central banks, and jewellers worldwide. Historically, international benchmarks for the price of gold have been set in specific financial centres. This question checks whether you know which city is traditionally associated with determining the benchmark value of gold in world markets.

Given Data / Assumptions:

• The question is about the city where the value of gold is determined in an international benchmark sense.
• Options are Rome, Washington, Tehran, and London.
• We focus on the historical and widely used gold price fixing centre.

Concept / Approach:

London has long been a major centre for bullion trading and price discovery for gold. The London Bullion Market and related institutions conduct sessions where the gold price is fixed or benchmarked. While modern electronic trading occurs globally, the traditional phrase that the value of gold is determined in London remains standard in exam oriented general knowledge. Rome, Washington, and Tehran do not play the same central benchmark role for global gold pricing.

Step-by-Step Solution:

Verification / Alternative check:

General knowledge books and multiple choice question collections on economics commonly include the statement that the value of gold is determined in London. Explanations often mention that London bullion markets and benchmark fixing sessions help set reference prices used worldwide.

Why Other Options Are Wrong:

Rome is an important European capital but is not the traditional global centre for bullion price fixation.

Washington is associated with political institutions and international organisations but not specifically with gold price benchmarks.

Tehran is a regional capital in West Asia and does not hold the primary global role in gold price determination in standard exam references.

Common Pitfalls:

Test takers who are unsure may pick Washington due to its financial influence in modern times. However, the standard and historically entrenched answer in competitive exams remains London, associated with the London bullion market.

Final Answer:

The benchmark value of gold is traditionally determined in the city of London.