If you have ever looked up the price of gold, you have seen the spot price. It is the single number quoted on news tickers and dealer websites, and it is the starting point for almost every gold transaction in the world. But what does it actually mean?
The spot price, defined
The spot price of gold is the price for immediate delivery of one troy ounce of pure gold, quoted in US dollars and written as XAU/USD. “Spot” simply means “on the spot” — right now, as opposed to a future date. You can watch it update live on our gold price tracker.
Because gold trades around the world nearly 24 hours a day, the spot price is not set by a single exchange. It is discovered continuously across global over-the-counter markets and futures exchanges, and data providers aggregate those quotes into the figure you see.
What is a troy ounce?
Precious metals are measured in troy ounces, not the ordinary ounces used for food and letters. One troy ounce is about 31.1035 grams — noticeably heavier than the standard (avoirdupois) ounce of roughly 28.35 grams. So when a headline says “gold hit $2,000 an ounce,” it means $2,000 per troy ounce. If you want to work in grams or kilograms, our unit converter handles it.
What moves the spot price?
Gold reacts to a handful of big forces:
- The US dollar. Gold is priced in dollars, so a weaker dollar often lifts the gold price and a stronger dollar can push it down.
- Interest rates. Gold pays no interest, so when rates rise, holding it becomes relatively less attractive.
- Inflation and uncertainty. Investors often turn to gold as a store of value during inflation or geopolitical stress.
- Supply and demand. Mining output, central-bank buying, and jewellery and industrial demand all play a part.
Spot price vs. the price you pay
The spot price is a wholesale benchmark. When you actually buy a physical coin or bar, you pay a premium over spot. That premium covers minting, distribution, insurance and the dealer’s margin, and it is larger for small items like single coins than for large bars. When you sell, you typically receive slightly below spot. The gap between those two is how dealers make money.
How to read a live price
A good live tracker shows three things: the current price, the change since the previous session’s close, and the time of the last update. The change tells you the day’s direction at a glance, and comparing gold with silver — via the gold-to-silver ratio — adds useful context about how the two metals are moving relative to each other.