All You Need To Know About Gold Spot Prices


Gold has long been the cornerstone of wealth, and like all other commodities, gold has a face value that changes constantly. This is called the “spot price” and gold dealers around the world refer to the current spot price when buying and selling gold in all formats.

How is the spot gold price determined? In this article, we will explain this and also give you an overview of the gold market in general.

Live Gold Prices

When you visit an online gold bullion dealer to check the latest gold bullion price, look for a tab that says “live gold prices”, which will take you to a page that displays the current spot prices for the different forms of gold. The page is constantly updated and in real time, it displays the current prices at the moment you are viewing the page; remember, this can change in an instant.

Complex Set Of Variables

The spot price of gold is determined by a number of variables, mainly by the data received from major commodity exchanges around the world, such as in London, New York, Hong Kong, China and Zurich. The futures trading market plays a part in the spot price of gold, while other factors that play a part include the value of paper and digital currencies, plus, as you would expect, the current state of supply and demand.

The London Bullion Market Association

The London Bullion Market Association (LBMA) sets the spot price for gold on a daily basis, at the start of the trading day, and as the day progresses, data from COMEX, the New York Exchange, is also taken into account. The spot price is not dependent on the actual physical exchange of gold, rather it is determined by electronic exchanges, with the futures trading market playing a major role in setting the spot price for gold.

Buying Or Selling Gold

If you wish to buy or sell gold at any given time, then the current spot price will determine the value, and you should only deal with a reputable gold bullion dealer when buying or selling gold. Of course, you are taking a chance that gold spot price might change at any time, and such is the complexity, it is almost impossible to know in advance how spot prices will fare on a day-to-day basis.

Gold Coins

Long-Term Investment

If you are looking to buy gold, it should be regarded as a long-term investment, as you are unlikely to see a return if you sell within a short time of buying. Many factors could cause gold’s spot price to rise or fall, and when currencies like the US dollar perform badly, usually this will mean a slight rise in gold prices, as investors sell their dollars and put their wealth into gold.

When looking to buy or sell gold in any format, you are advised to search online for an established gold bullion dealer and refer to their “live gold prices”, as this will tell you the current rates at which gold is being bought and sold.