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 that day’s gold value, the reality is that literally moments after the price fixing takes place it begins to change continually based on worldwide trading, on supply and demand. 

The Gold Fix price only appears twice a day without all the fluctuations that take place during the day, whereas the New York Spot Price is updated every 30 seconds.

That is why the New York Spot Price is different from the London Gold Fix price.  The spot price changes on a regular basis, just as stock prices do, and reflects the bid and ask prices quoted by wholesale dealers for spot delivery. 

2 Comments on What Is the Difference between a Spot Gold Price and a Gold Fix Price?

Gold ETFs: Another Way to Invest in Gold | Gemologist Sam


[...] gold bullion while others invest in futures contracts.  Physically-backed Gold ETFs will track the spot price of gold more accurately, since the value of the underlying holdings depends solely on the market price of [...]

The Difference between Gold Bullion Coins and Numismatic Gold Coins | Gemologist Sam


[...] bullion coins are bought and sold for changes from hour-to-hour and day-to-day based on the gold spot price fluctuations.  It’s like dealing with a moving [...]

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