What is a spot price of gold
Gold is a metal that is inert and malleable. Hence gold does not tarnish, and even the strongest acid does not affect gold. Although gold has many industrial uses, it has been used mainly for jewelry making and money. The price of gold is quoted in troy ounces and grams.
The spot price of gold is the standard used to gauge the rate of one ounce of gold. Bullion dealers are highly dependent on the spot gold prices as it helps them to determine the daily gold price of the gold bars and coins that they sell. The gold price is calculated in troy ounces and it not only changes daily but it changes every couple of seconds of the day during market hours. The spot price of gold is driven by the currency values, current events, speculation in the market and many more factors. The internet has nowadays become a useful tool for investors to check the daily gold rates. The spot gold rates are normally quoted per troy ounce in US dollars; however, you can also get the price of the daily gold prices per gram or kg. Hence the spot rate of gold is nothing but the current rate at which gold can be exchanged or delivered.
Gold is one of the most popular metals that is traded all over the world. The COMEX is the key exchange for determining the spot price of gold. The futures contract traded on the COMEX is the means by which the daily gold price is determined. The spot price is the existing price for one ounce of .999 fine gold that is available for delivery immediately. The spot gold price does not take into account the dealer or distributor price. The dealer also has to make a profit. Hence the spot gold price is marked up even further to accommodate the dealer price. This is why we witness dealers buying at a price lower than the spot gold price so that they can sell it.