Calculate the absolute and percentage difference between gold spot and futures prices. Use the result to see whether the futures market is trading at a premium or discount to spot.
Premium, discount and futures basis.
A positive basis means futures trade above spot. A negative basis means futures trade below spot.
The relationship can reflect financing, carrying costs, storage, market expectations, liquidity, time to expiry and other factors. The difference is not automatically free arbitrage profit.
Calling futures “expensive” or “cheap” relative to spot requires context. A futures premium can be economically normal when there are carrying costs or other differences between the two instruments.
Futures price minus spot price.
Difference divided by spot price.
Yes.
No.
No. It compares prices per stated unit.