Gold prices are always fluctuating, which keeps financial investors checking the price of the precious metal almost every morning. Despite the volatility level of predictions, gold still remains to be the best potential investment available today. Even though a lot of people see the value of gold as an asset, there is still a strong market for physical gold. There is a high demand for gold in order to keep up with the ever-increasing price, but how can you tell when the day is right purchase? First and foremost it is important to understand the Today's Gold Rate and its significance. Most people believe that the gold price is set by the state,and although this may be partially true, the actual process is a lot more complex. The gold price is basically an index that indicates the spot price of the metal at any given moment. Gold futures contract works on the same principle of selling and buying but instead of physically purchasing the metal you instead buy a stock that will represent the gold price when the market opens. To sell gold futures contracts you simply have to buy contracts that allow you to purchase physical gold at a pre-determined price. As gold prices rise in the selling price of gold coins generally falls since more people want to own physical possession of the metal. Another factor that influences the gold price is the balance of trade between the major international governments. When a country exports less gold it increases the deficit in its gold coin production, thus forcing the exchange rate to go up. This also encourages more investors to turn to gold coins, thus contributing to the increase in gold bullion around the world.