Spot Price Explained
What the spot price of gold means
The spot price of gold is what you’d pay if you bought or sold gold for immediate delivery in the dealer-to-dealer market. You’ll see it quoted by dealers, newsfeeds and on market charts, it’s the starting point in wholesale pricing.
In market terms, 'spot' means right now, not at a future date. By comparison, a futures price is agreed in advance for delivery later, sometimes months ahead. Spot prices are quoted per troy ounce, usually in US dollars, but you can convert them to any currency using the latest exchange rate.
Spot prices move every second while markets are open. That price reflects what the biggest buyers and sellers are willing to deal at, it’s not a fixed value that applies everywhere at once.
Who sets the spot price and how
No single entity sets the spot price. Rather, it comes from nonstop trading between banks, bullion dealers, brokers and investment funds in what’s called the over-the-counter (OTC) market, where deals are made directly, not through a centralized exchange. Futures contracts on exchanges like COMEX in New York are tracked as well. Their quoted prices often guide spot, as we describe in our article on spot vs futures prices.
London is the main center for trading physical gold globally. The LBMA Gold Price is established there through electronic auctions twice every working day. It’s known as a benchmark or settlement price and follows spot closely, though it isn’t a live quote in real time.
Different data feeds and calculation methods mean you’ll see minor differences in spot prices across websites. These small discrepancies are common. Always check what source or market a specific figure uses before you compare.
Why you rarely pay the spot price
If you buy gold as an individual, you almost never pay spot. Dealers put a premium on each coin, bar or piece, which covers fabrication, logistics, and their own costs. More on this is in the premium over spot guide.
Dealers also buy your gold back for less than spot. Their buy price is below wholesale, this difference between buy and sell prices is called the spread, so it’s a hidden part of your true trading cost.
To see how a dealer’s offer compares to the market, check the live spot price at the same moment, then match up the units and the currency. Calculate the percentage difference so you know the true cost. You’ll find an updated reference on the gold price page.
Gold and silver can be unpredictable, prices go up and down fast. If you choose to invest, you could lose money.
Frequently asked questions
Is the spot price the same as what I pay for gold?
No, the price you pay is nearly always above spot. Spot pricing is for immediate, wholesale-sized trades. Retail gold comes with a premium that includes production, shipping and dealer margin, plus buybacks usually happen below spot. The difference depends on what you buy, so check each offer against the spot price at the time you order.
Where can I find the live spot price of gold?
You can view current spot prices on financial data feeds, mainstream news services and most precious metal dealer websites, such as our own gold price page. Quotes can vary slightly since each source uses its own stream. Always check if the price you’re seeing is per gram or per ounce, and note the currency shown.