A spot gold price means current selling price or it can be stated that price based on the price of “futures” contracts. Futures contracts are traded on future exchanges operating in several countries.
These futures contracts are standardized contracts with regards to lot size, delivery period between the vendor and buyer. Seller means who deliver the commodity and buyer means who receives the commodity for an amount fixed in future. Futures Exchanges facilitate single point for commercial trade of major commodities of country. The commodities may include energy sector like crude oil, natural gas. It might also include cereals like wheat, corn, and soya beans, and metals like iron, copper, lead and zinc. Also future exchanges deal in gold silver and platinum plus other precious metals.
Dependant on market futures contracts can be acquired for each month of the year. It means an agreement for delivery of June can be acquired xauusd during of year. Basic behind to determine future market is to permit commercial producers and consumers to determine some guaranteed prices and also guaranteed method of getting the commodity which will be the niche matter of contract.
Spot price of gold fluctuates dependant on demand and supply. Future contracts are accustomed to hedge the change in gold price risk. Hedgers are those who would like to minimize their risk against the purchase price change. Other participants of market are speculator who would like to take risk means the danger which a hedger wants to avoid. By the use of future contract spot price risk could be minimized. Also by the utilization forward contract spot gold price could be fixed to minimize the danger of price fluctuation of gold in future.
Spot gold price could be determined on commodity exchange market. Most of the futures contracts are traded on the commodity exchange. You can find the spot gold price from the commodity exchange like COMEX situated in New York. The COMEX (Commodity Exchange) is leading commodity exchange in the United States for metals. The method of where spot gold prices on the COMEX is determined has been specified in the NYMEX rule book.
These markets are fully computerized and the data they provide is in real-time. Second by second information about gold spot price of the futures contract of the active month since it is trading on the exchange is easily available. On the exchange the most active nearby month is also known as the spot month. If you like more concerning the Spot gold price it might be produced from the active month calculation. And the closing gold spot price for the day is derived from that days trading of the spot month futures contract. In New York spot gold price close is calculated as the average of the highest and lowest prices of the trades over the last two minutes of closing period which will be 1:28-1:30 PM.
People have option to get gold from dealer or from exchange. But you will see the difference in spot gold price on the exchange actual prices today for small amounts of gold coins