My 16 year old son has a round, perfectly circular, very raw, red spot a little larger than a quarter on his arm. It does not itch and resembles a burn. It started out looking like a cigarette burn. It rapidly grew larger and redder. We have taken him to his doctor five times and he has seen a dermatologist twice. They have taken skin scrapings and ruled out eczema, lyme disease, and ringworm. They have taken a biopsy of his skin, and results will take about a week. He has been prescriped fluocinonide and it isnt helping. I am getting very concerned as it seem to be getting larger.
One possibility for your symptoms is granuloma annulare. Granuloma annulare is a chronic disease consisting of a rash with reddish bumps arranged in a circle or ring. Usually it is asymptomatic but due to cosmetic disfigurement topical or oral steroids may be needed. Please discuss this with your dermatologist.
It is very difficult to precisely confirm a diagnosis without examination and investigations and the answer is based on the medical information provided. For exact diagnosis, you are requested to consult your doctor. I sincerely hope that helps. Take care and please do keep me posted on how you are doing.