What Is the Difference between a Spot Gold Price and a Gold Fix Price?
What is a spot price and why is it sometimes different from the London Gold Fix price? The spot price (also known as the spot rate) of gold is the price that is quoted for immediate (spot) payment and delivery. [NOTE: Settlement can be 1-2 days after the trade date, but the price is determined immediately.] When you’re investing in the stock market, it’s called the cash price. Gold is traded throughout the world, which means it is being traded somewhere 24 hours a day. To make matters more complex, gold takes on many forms ranging from the abstract (such as futures contracts) to the tangible (such as jewelry and coins). If that weren’t enough, the London Gold Fix price is not fixed for the entire day. It is fixed at 10:30 a.m. and again at 3:00 p.m. (London time) so the members of the London Bullion Market Association can take care of orders and commissions from clients based on the price at that moment in time. While the London Gold Fix price is accepted as a worldwide benchmark of th
