An area gold price means current market price or it can be stated 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 when it comes to 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 might 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.
Dependant on market futures contracts can be obtained for monthly of the year. It means a contract for delivery of June can be obtained xauusd during of year. Basic behind to establish future market is to allow commercial producers and consumers to establish some guaranteed prices and also guaranteed supply of the commodity which can be the topic matter of contract.
Spot price of gold fluctuates based upon demand and supply. Future contracts are accustomed to hedge the change in gold price risk. Hedgers are those who would like to minimize their risk against the price change. Other participants of market are speculator who wants to take risk means the chance which a hedger wants to avoid. By the use of future contract spot price risk could be minimized. Also by the use forward contract spot gold price could be fixed to minimize the chance of price fluctuation of gold in future.
Spot gold price could be determined on commodity exchange market. All of the futures contracts are traded on the commodity exchange. You will find the location gold price from the commodity exchange like COMEX situated in New York. The COMEX (Commodity Exchange) is leading commodity exchange in the United States for metals. The procedure of through which spot gold prices on the COMEX is determined has been specified in the NYMEX rule book.
These markets are fully computerized and the info they offer is in real-time. Second by second details about gold spot price of the futures contract of the active month as it is trading on the exchange is easily available. On the exchange the absolute most active nearby month is also referred to as the location month. If you’d like more about the Spot gold price it may be derived from the active month calculation. And the closing gold spot price for your day hails from that days trading of the location month futures contract. In New York spot gold price close is calculated as the common of the highest and lowest prices of the trades over the last two minutes of closing period which can be 1:28-1:30 PM.
Individuals have option to buy gold from dealer or from exchange. But you can see the difference in spot gold price on the exchange actual prices today for small levels of gold coins