An area gold price means current market price or it may be said that price based on the price of “futures” contracts. Futures contracts are traded on future exchanges operating in several countries.

These futures contracts are standardized contracts in terms of lot size, delivery period between the vendor and buyer. Seller means who deliver the commodity and buyer means who receives the commodity for a cost fixed in future. Futures Exchanges facilitate single point for commercial trade of most major commodities of country. The commodities may include energy sector like crude oil, natural gas. It could 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.

Based upon market futures contracts is available for every month of the year. This means a contract for delivery of June is available xauusd through of year. Basic behind to determine future market is to allow commercial producers and consumers to determine some guaranteed prices and also guaranteed method of getting the commodity that is the subject matter of contract.

Spot price of gold fluctuates based upon demand and supply. Future contracts are used to hedge the change in gold price risk. Hedgers are those who wish to minimize their risk against the purchase price change. Other participants of market are speculator who would like to take risk means the risk which a hedger really wants to avoid. By the utilization of future contract spot price risk can be minimized. Also by the use forward contract spot gold price can be fixed to minimize the risk of price fluctuation of gold in future.

Spot gold price can be determined on commodity exchange market. All the futures contracts are traded on the commodity exchange. You can find the spot gold price from the commodity exchange like COMEX positioned in New York. The COMEX (Commodity Exchange) is leading commodity exchange in the United States for metals. The method 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 information they provide is in real-time. Second by second details about gold spot price of the futures contract of the active month since it is trading on the exchange is easily available. On the exchange the absolute most active nearby month is also called the spot month. If you prefer more in regards to the Spot gold price it might be derived from the active month calculation. And the closing gold spot price for your day comes from that days trading of the spot month futures contract. In New York spot gold price close is calculated as the typical of the greatest and lowest prices of the trades over the past two minutes of closing period that is 1:28-1:30 PM.

People have option to get gold from dealer or from exchange. But you can see the difference in spot gold price on the exchange actual prices today for small amounts of gold coins