Spot gold is the price of gold traded for immediate delivery in the global market. It reflects the current value of one ounce of gold and moves throughout the day as supply, demand and market sentiment shift. Traders follow spot gold because it acts as the benchmark price for most short-term gold transactions, including XAU/USD in forex platforms. Unlike futures, which are based on contracts expiring at set dates, spot gold represents the live market value without a delivery commitment for retail participants.

Spot gold reacts quickly to economic data, interest rate decisions and geopolitical events. When inflation rises or the dollar weakens, spot gold often climbs because investors look for a store of value. Central bank comments, bond yields and risk sentiment also play a major role in shaping its direction. Liquidity is highest during the London and New York sessions, which makes price movements sharper and more predictable.

Many traders rely on spot gold because it offers clear trends and strong volatility. It supports a range of strategies, from scalping to long-term investing. Technical tools like support and resistance, moving averages and Fibonacci levels are commonly used to study its moves. Because spot gold can change direction fast, risk management is essential. Setting realistic targets, managing leverage and respecting stop losses help traders stay consistent. Spot gold remains one of the most followed assets due to its transparency, global demand and role as a safe-haven during uncertainty.