Gold Market Sees Split Between Spot and Futures Prices Due to Different Rules
The gold market is experiencing a split between spot and futures prices due to different rules and plumbing. Spot prices are based on an over-the-counter (OTC) benchmark, while futures prices are traded on exchanges with margin, expiries, and delivery terms.
The London Bullion Market Association (LBMA) sets the daily gold price through twice-daily auctions in London, which serves as a reference point for OTC quotes. In contrast, futures contracts on the COMEX venue trade nearly around the clock, with expanded Globex hours starting July 24, 2026.
The basis between spot and futures prices reflects carrying costs and benefits between now and the futures expiry. When interest rates and storage outweigh convenience, the curve tends to sit in contango, where futures trade above spot. Conversely, when the market desperately wants metal today, the convenience value can flip the sign and push the curve into backwardation.