What does 'spot gold price' mean?

The spot gold price is the current price that the metal is trading at in the open market. The gold Market is opened 24 hours / day, Monday – Friday. Gold is traded on markets worldwide, including the New York, London, Frankfurt, Hong Kong and Sydney markets. 

The spot price of gold can vary significantly, and in times of economic uncertainty can easily gain or lose 5% of its value within one day. For investors looking to purchase gold and holding for the long term, these day to day fluctuations do not make a great difference. However, for investors looking to day trade or hold their positions for a short time, current volatility in the marketplace should be considered.

Precious metals dealers sell gold bullion at prices above the spot price of gold. This premium above the current gold price takes into account the cost of manufacturing and transporting the bar.