What is (gold) bullion?

Bullion is gold and silver recognized as being at least 99.5% pure and is in the form of bars rather than coins. To create bullion the gold must be discovered by mining companies and removed from the earth in the form of gold ore, a combination of mirealized rock and gold It’s then extracted from the ore with chemicals or heat.

Banks and investors who hold gold typically do so in the form of bullion and is traded in the bullion market.
There are two factors influencing the price of gold bullion: 1) Demand from companies that use gold to make and sell jewlry (or other products) and 2) the overall economy.