What I mean by this question is when I buy gold, which currency is the price of the gold based on?
So assuming I am from China and I wish to buy gold through goldmoney.com, they allow me to choose the currency I wish to transact in. However, I wish to know how they get the price of gold in terms of RMB. Do they first get the price of gold in the US markets and they quote me the price in RMB using current exchange rates?
The reason I'm asking is because there has to be a single price of gold in the whole world right? otherwise arbitrage opportunities arise. If so, where does this "initial price" stem from before the price can be quoted into different currencies?
P.S. I am not asking how to derive by the price of gold (costs of mining a gold) or whatnot in case anyone misunderstands. I am asking which country is the price of the gold based off if that makes sense. Please feel free to let me know I am totally misunderstanding the whole situation and enlighten me! Thanks a lot in advance.