What Does Spot Gold Price Mean?
A spot gold price means current market price or it can be said that price based on the price of “futures” contracts. Futures contracts are traded on future exchanges operating in a number of countries. These futures contracts are standardized contracts in terms of lot size, delivery period between the seller and buyer. Seller means who deliver the commodity and buyer means who receives the commodity for a price fixed in future. Futures Exchanges facilitate single point for commercial trade of all major commodities of country. The commodities may include energy sector like crude oil, natural gas. It may 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. Depending upon market futures contracts is available for each month of the year. It means a contract for delivery of June is available through out of year. Basic behind to establish future market is to allow
