Agreement and settlement are separate
A trade date records when counterparties agree the terms of a transaction. Its value date identifies the intended settlement date, when payment and the corresponding metal transfer or account credit occur. Spot describes near-term settlement under the relevant market’s conventions. It does not necessarily mean that money and a physical bar change hands at the exact moment a price appears on a screen. [1] [3]
The London convention
In the London bullion market, spot normally settles two good London business days after the trade. Without intervening holidays, a Monday transaction ordinarily has a Wednesday value date, while a Friday transaction ordinarily points to Tuesday. Holidays and settlement conventions matter, including relevant US dollar payment holidays. The shorthand T+2 is useful, but it is not an unconditional rule for every gold transaction in every country. [1]
A quote has specifications
The London market commonly quotes gold in US dollars per fine troy ounce, with quality and location conventions behind the quotation. The words fine and troy are doing real work: they identify gold content and the unit of weight. A quoted wholesale metal value is different from the final price of a ring or a small retail bar. Product manufacture, distribution and seller terms add further considerations. [2]
One market, several reference points
London’s over-the-counter market allows counterparties to agree transactions rather than routing every deal through a single exchange. A continuously changing spot quotation is also different from a benchmark auction price established at specified times. Before comparing two displayed numbers, check the unit, currency, time, settlement basis and product. Two prices can both be valid while describing different things. Spot is a starting point for understanding a transaction, not its complete specification. [2] [3]
Sources & further reading
Sources checked 14 November 2026. The artwork is illustrative. Reference organisations do not endorse this website. Financial examples are educational, not investment recommendations.