What Is Spot Gold?
If you have ever looked up "gold price," the number you saw was almost certainly the spot price — the current market price for one troy ounce of gold bullion, available for immediate delivery. It is the single most important number in the gold market, and nearly everything else is priced from it.
Where the spot price comes from
Gold trades almost around the clock on exchanges and over-the-counter (OTC) markets across Asia, Europe and North America. As buyers and sellers transact, the last traded prices converge into a continuously updating market consensus: the spot price. Two references matter most:
- Exchange trading — gold futures on major commodities exchanges trade nearly 24 hours a day, and their front-month contract tracks spot closely.
- The London benchmark — twice daily, an auction of major bullion banks sets the LBMA Gold Price, which many contracts around the world use as an official reference.
Spot vs. futures
Futures are contracts to buy or sell gold at a set date in the future. Their price usually sits slightly above spot, reflecting the "cost of carry" — financing, storage and insurance until delivery. Because futures markets are hugely liquid, traders often watch futures prices and talk about them interchangeably with spot. They are not identical, but they move together.
Spot vs. what you actually pay
Walk into a coin shop and you will pay spot plus a premium. The premium covers refining, minting, packaging, distribution and the dealer's margin, and it varies by product: large bars carry small premiums; small coins carry larger ones. Sell gold back and the dealer will typically pay spot minus a spread. Neither number equals spot — spot is the neutral middle the market pivots around.
Who uses the spot price?
- Central banks value reserves and time purchases against it.
- Jewelers price gold jewelry as metal value plus workmanship.
- ETFs and funds track spot to keep share prices aligned with bullion value.
- Individuals use it to check whether a dealer's quote is fair.
Key facts to remember
- Spot is quoted per troy ounce — 31.1035 grams — not the kitchen ounce.
- It refers to unrefined-to-standard bullion meeting "good delivery" purity (at least 995 parts per thousand).
- It updates continuously during global trading hours, roughly Sunday evening to Friday afternoon New York time.
Ready to see it live? Check the gold price today, or learn what makes it move in What Moves Gold Prices?