Understanding Spot Prices
The spot price is the current market price at which a given asset — in this case, a precious metal — can be bought or sold for immediate delivery. Spot prices are determined by trading on major global exchanges including COMEX (New York), the London Bullion Market, and the Shanghai Gold Exchange.
What Affects Spot Prices?
Precious metals spot prices are influenced by a wide range of factors:
- Supply and Demand: Mining output, industrial usage, and investment demand all play a role.
- Monetary Policy: Federal Reserve interest rate decisions and money supply directly impact gold prices.
- Geopolitical Events: Wars, trade disputes, and political instability drive safe-haven demand.
- Currency Movements: Gold is priced in USD, so dollar strength inversely affects gold prices.
- Inflation Expectations: Gold is historically viewed as an inflation hedge.
Spot Price vs. Retail Price
The spot price is the wholesale price. When you buy physical gold or silver from a dealer, you will typically pay a premium above spot that covers manufacturing, distribution, and dealer margins. This premium varies by product type (bars vs. coins) and current market conditions.
Spot price data provided by GoldBroker.com. Prices are updated every minute and displayed in USD per troy ounce.