This can be a fun little write-up talking about how the price of gold is defined. This really is archaic and dates all the way up back to 1919. OK, they have moved a bit with the times now and so they use a telephone instead of actually all conference within the same room however the old ways still do appear to persist.
Perhaps we should not say gold price, but one of several gold prices is fixed in this funny old manner. The five main seller banks all get together and basically barter concerning the price at which they’re ready to buy or sell gold. Within the old system if they desired to take some break in the bartering they might elevate just a little union jack flag they had on their desk.
Once they reduce it then it all starts again. Once the bartering was finished then all the flags would stay down. Now, obviously, over the telephone, no-one can see the flags: so, instead, it is said "flag" if they want that break. Funny how this stuff go really, old traditions hanging on.
But do understand, this is the way the gold spot price is fixed: futures and options prices change constantly. And it’s just the London spot gold price that is fixed this way: all others just does it on the internet.