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Trading financial products on margin carries a high risk and is not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.

Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Please ensure you fully understand the risks and take appropriate care to manage your risk.

Your capital is at risk.

Commodities Trading

Spot gold: Live price, meaning

Golden coins and a rising chart graph, symbolising growth in Spot gold market.

What is the spot gold price now?

What is meant by spot gold?

Spot gold refers to the current price of gold for immediate purchase or sale, usually for delivery within a short period, like two business days. It's like checking the price tag on an item in a store before buying it. For instance, if the gold spot price is $1,800 per ounce, you can buy or sell one ounce of gold for that amount right now, without waiting for any future settlement or delivery.

  • Immediate price: Spot gold reflects the price at which gold can be bought or sold "on the spot," meaning right now. This price is based on the current supply and demand dynamics in the gold market, influenced by factors like economic conditions, geopolitical events, and investor sentiment.
  • No contracts or future delivery: Unlike futures contracts, which involve agreements to buy or sell gold at a future date for a predetermined price, spot gold transactions involve immediate delivery and settlement. This means there's no waiting period or future obligation—you buy or sell gold at the prevailing market price, typically within two business days.

Trade Gold CFD online with Skilling

Did you know you could trade gold without owning actual gold? Thanks to CFDs (Contract for Difference), this is now possible. Start trading gold CFDs online with Skilling today and take advantage of its price movements in real time. With Skilling's user-friendly platforms and award-winning CFD trading platforms, you can easily access the gold market and seize gold trading opportunities in real time. 

  • Multiple deposit and withdrawal methods.
  • Enjoy tight and low spreads.
  • Speed: average trade execution at 5ms.
  • Easy to use platform.

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Understanding spot gold trading vs. gold CFD trading

When it comes to investing or trading the price movements of gold, there are two distinct approaches: spot gold trading and gold CFD (Contract for Difference) trading. It's crucial to differentiate between these methods to avoid any confusion and make informed decisions. Let's delve into each:

As you've seen, spot gold refers to the current price of gold for immediate purchase or sale, typically with delivery within a short period, usually two business days. For instance, if the spot gold price is $1,800 per ounce, you can buy or sell one ounce of gold for that amount right away, without any future obligations.

In contrast, gold CFD trading involves speculating on the price movements of gold without owning the physical metal. Traders enter into contracts with brokers like Skilling to exchange the difference in the gold price between the contract's opening and closing positions. This approach allows investors to profit from both upward and downward price movements without dealing with physical gold ownership.

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FAQs

1. How can I access the spot gold price?

The spot gold price is readily available through financial news websites, specialised market data platforms, and trading platforms like Skilling offering real-time pricing information and gold CFD trading.

2. Can I buy or sell physical gold at the spot gold price?

Yes, you can buy or sell physical gold at the spot gold price through reputable dealers or bullion banks. However, additional costs such as fabrication, transportation, and storage fees may apply.

3. Is spot gold the same as futures or options contracts?

No, spot gold involves immediate delivery and settlement of physical gold at the current market price, whereas futures and options contracts involve agreements to buy or sell gold at a predetermined price on a future date.

4. How does spot gold trading differ from gold ETFs and mining stocks?

Spot gold trading allows investors to directly speculate on the price movements of gold without owning physical gold, while gold ETFs and mining stocks represent indirect investments in gold-related assets through funds or companies involved in gold mining or trading.

5. What are the advantages of trading spot gold?

Trading spot gold provides investors with liquidity, flexibility, and transparency, allowing them to capitalise on short-term price movements and hedge against inflation or market uncertainties.

6. Are there risks associated with spot gold trading?

Like any investment, spot gold trading carries inherent risks including price volatility, geopolitical risks, currency fluctuations, and counterparty risks. It's essential for investors to conduct thorough research and manage their risk exposure accordingly.

Past performance does not guarantee or predict future performance. This article is offered for general information purposes only and does not constitute investment advice.

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Try out any of Skilling’s trading platforms on the device of your choice across web, android or iOS.
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