Gold Spot Price

 

Understanding the Gold Spot Price

What is the gold spot price?

Simply put, the fluctuating gold spot price is today's standard price discovery mechanism used to help set and establish the price of a single troy ounce of physical gold bullion.

The gold spot price plays a critical role in gold sales and live gold price dynamics, as well as in other investment arenas. You will also notice that during market trading hours, beginning in Asia late Sunday nights and throughout the workweek, the gold spot price is not constant – it often fluctuates and changes over the course of trading days. These price fluctuations are usually minor, and should only play a decisive role in ultra-short-term investments, not in long-term gold bullion buying.

Quite a few different factors play a role in determining the spot price at any single time, including currency values, the supply and demand of gold bullion and gold derivatives (e.g. futures contracts, ETFs, options), current events affecting the financial markets and the world at large, market speculation, and more.

With that being said, the impact of governments, central banks, big banks, and even major investors can also affect the current (and future) gold price. For instance, the CME Group's COMEX which mainly dictates the ongoing day to day spot prices for gold around the world. This entity openly encourages non-US central banks to actively trade gold futures contracts amongst other various precious metals, FX, and interest rate critical price discovery futures contracts.

As well, suppose the Federal Reserve began buying up private gold, or the European Central Bank started stockpiling gold bullion heavily. This surge in physical gold demand should cause prices to rise. Most gold bullion investors would need fiat currency offers for their gold many multiples higher than today's price points in order to be moved to selling. 

In general the higher the demand for gold bullion, the higher the gold spot price will rise. When major investors (e.g. billionaires) begin buying up large quantities of gold bullion, or gold mines, this can also affect the market and gold prices positively.

In the short to medium term, gold price dynamics can remain mostly influenced by derivatives traded on the COMEX, LBMA, etc. Contrarily the long term price of gold is typically decided by gold's supply-demand fundamental factors.

How to Invest in Gold

There are quite a few things you’ll need to know in order to use gold as an investment. One of those is the current gold price or spot price of gold. You’ll also need to determine how you will be investing. It’s possible to buy physical gold in the form of gold bullion, but you can also invest in ETFs, which are essentially paper certificates that attempt to mimic a specific amount of gold.

Physical gold is the preferred option for those who are going to buy and hold gold as a hedge against economic uncertainty, while certificates can be a better choice for those looking for a shorter-term investment option (think day trading). In addition, certificate holders will never take physical possession of the gold they own, which can be a drawback for some. In terms of gold bullion, you can invest in gold in the form of gold bullion coins like the Canadian Gold Maple Leaf coins or the American Gold Eagle coin, or in gold bars usually measured in grams, ounces, and kilograms.

Gold Price FAQs

Table of Contents

How much is an ounce of gold?	What is the Price of Gold Today?	How much is an ounce of gold worth?	What is the spot price of gold?
Is the gold rate in the US different from the gold rate in other countries?	Why do I need to know the past and current price of gold?	How do we calculate the price of gold per ounce?	How much is 1 gram of gold worth?
Why does gold history price matter?	Is the gold spot price the cost I’ll pay to buy an ounce of gold?	What is the ounce of gold price?	How does the gold bar price vary from the ounce of gold price?
What currency are gold prices per ounce offered in?	Is today’s gold price the same in all nations?	What Factors Affect the Price?	What common factors influence the gold price?
Does gold fluctuate too much to make it worth the time of an ordinary investor?	Does the gold market operate 24 hours per day around the world?	How frequently does the gold ounce price change?	How do I compare the current price for gold?
What’s the difference between gold futures and bullion?	Are gold futures the same as buying physical gold?	Is a gold ETF the same thing as buying physical Gold Bullion?	Is the price of gold I’m quoted going to be the price I pay?
How do current gold and silver prices relate to one another?	What are the differences in grams and ounces when applied to gold bullion?

How much is an ounce of gold?

An ounce of gold is the worldwide standard weight that’s used when discussing the gold market, and also when referring to a one ounce gold coin specifically. Because gold is more dense than silver, a one ounce American Gold Eagle is smaller in size than a one ounce American Silver Eagle. Because of this difference in density between the two metals, some people say that a one ounce gold coin feels heavier than a one ounce silver coin, even though they both weigh one ounce.

What is the Price of Gold Today?

The price of gold “today” is the “gold spot price”. The spot price is the price in the gold “futures” markets, and that price can vary depending on which market a person is quoting or watching, such as New York or London. The spot price is the gold price one sees on financial news networks’ tickers and trackers, but the spot price is not the only price a person must pay when actually buying gold. There is also a premium price for whichever type of gold is being purchased, which is added to the spot price.

How much is an ounce of gold worth?

Assuming investment grade gold of .999 purity, an ounce of gold is worth the spot price, plus or minus any premiums, based on market conditions. For example, if a person has a rare, sought after one ounce gold coin produced by a sovereign mint, that coin is generally worth more than a generic one ounce gold round produced by a private mint. That is to say, gold price per ounce depends on exactly what gold is being appraised or evaluated.

What is the spot price of gold?

The gold spot price is basically the cost of a single troy ounce of gold at any given moment in time. The spot price of gold is set by different authorities in different areas. For instance, in the UK, the LBMA sets the spot price of gold. In the US, it’s done mostly through New York (COMEX). There are many other gold markets around the world, and all of them set the same price. The gold price in different worldwide markets is set based on a single value and then translated into a different currency.

Is the gold rate in the US different from the gold rate in other countries?

Yes, the price of gold, specifically the spot gold price, will be different from one market to another, but only marginally so. You’ll actually pay the same regardless of your market. While there is a 24-hour gold market, it’s closer to Forex than the stock market in terms of performance. However, with that being said, there is usually a very close correlation between the gold rate for one market and the gold rate for another.

This all said, since the year 2000 gold has performed better vs some fiat currencies like the Argentine peso vs other stronger less rapidly debasing fiat currencies like Swiss francs or New Zealand dollars for instance. See various annual price performances of Gold vs Fiat Currencies below.

GOLD vs FIAT CURRENCY KEY

Gold vs USD = Gold vs US dollars, Gold vs dollar
Gold vs ARS = Gold vs Argentine pesos
Gold vs AUD = Gold vs Australian dollars
Gold vs BRL = Gold vs Brazilian real
Gold vs CAD = Gold vs Canadian dollars
Gold vs CHF = Gold vs Swiss francs
Gold vs CNY = Gold vs Chinese yuan, Gold vs yuan, Gold vs renminbi
Gold vs EUR = Gold vs euros
Gold vs GBP = Gold vs pound sterling, Gold vs British pounds
Gold vs IDR = Gold vs Indonesian rupiah, Gold vs rupiah
Gold vs INR = Gold vs Indian rupee, Gold vs Rupee
Gold vs KRW = Gold vs South Korean won, Gold vs won,
Gold vs JPY = Gold vs Japanese yen, Gold vs yen,
Gold vs MZN = Gold vs Mozambican metical, Gold vs metical
Gold vs NZD = Gold vs New Zealand dollars, Gold vs NZ dollars
Gold vs RUB = Gold vs Russian ruble, Gold vs rubles
Gold vs TRY = Gold vs Turkish lira, Gold vs lira,
Gold vs ZAR = Gold vs South African rand, Gold vs rand

 

Why do I need to know the past and current price of gold?

By knowing the current gold price and comparing that with historical gold prices, you can determine whether there is an uptrend, downtrend or if gold’s value is remaining static. Based on this, you can then determine if now is a good time to buy (when prices are low but demand is expected to go up), a good time to sell (if prices are high but expected to go down), or a good time to hold your gold bars or bullion assets for the interim. However, this does require considerable analysis of the historical price of gold and access to accurate gold price charts and historical gold price information.

How do we calculate the price of gold per ounce?

We calculate the current gold price using an industry-leading live data feed to ensure that you always have the accurate information needed to make sound gold bars buying or selling decisions.

How much is 1 gram of gold worth?

One gram of gold is generally worth about 1/31 the price of one troy ounce of gold, as there are a 31.1034 grams in one troy ounce. Additionally, the worth of 1 gram must take into consideration any premiums. Since 1 gram gold coins, bars and rounds are more expensive to produce, they also generally command higher premiums, meaning the price one pays will be above and beyond the price for the mere weight of gold.

Why does gold history price matter?

Paying attention to gold price history is crucial for a number of different reasons. Primarily, gold price history is important for determining the current trend. Too many new gold buyers rely on the gold spot price and immediate fluctuations to determine whether they should buy or sell. However, gold is best acquired and held in a longer term fashion, and gold price's history helps you determine whether the overall trend is up, down or flat. Only by analyzing gold price history can you make an accurate determination of movement and then choose to take action or wait.

Is the gold spot price the cost I’ll pay to buy an ounce of gold?

No, you will not pay the gold spot price. The spot price does not apply to physical bullion investors, and does not include any dealer premiums or other charges. When you buy bullion from a dealer, you’ll pay a markup, which can vary from one dealer to another. Dealers buy at or slightly over the spot price from mints, and then add on premium to ensure they are able to make a profit and maintain their business. However, the spot price of gold is important to know because it allows you to determine whether or not you’re paying a fair price with the dealer you ultimately choose. The amount between what the gold dealer paid, and what you’re paying is the dealer’s gross profit margin which is intended to help them cover their costs of doing business.

What is the ounce of gold price?

The gold spot price is typically reflecting a troy ounce of gold.

The spot price is the value of one troy ounce of gold on the over the counter market. However, understand that gold is not always sold by the ounce, although that is one of the most common methods. Gold can also be sold by the gram and by the kilo (kilo bars are generally thought of for banks, governments and financial institutions due to the significant cost here). So, by knowing the gold price per ounce, you know the baseline of what you’ll typically pay for one troy ounce of .999 fine gold from a bullion dealer (plus that dealer’s and various gold mint markups for business costs).

By shopping around with different gold dealers, you’ll find different prices which reflect varying markup amounts.

How does the gold bar price vary from the ounce of gold price?

Gold is available in many different forms, including modern gold coins, gold bars and older collectible gold coins.

The gold bar price will vary depending on the amount of gold in the bar. If the bar contains one ounce of gold, the price will typically be slightly less per ounce than the gold price for government guaranteed and minted gold bullion coins or other similar gold bullion collectible items. However, if the gold bar contains more or less gold, the price will vary mostly depending on overall weight. For instance, a one gram gold bar will not cost the same as an ounce gold bullion bar or a one kilo gold bar.

Make sure to know the exact amount of gold bullion contained in any gold bar or gold coin before purchasing or selling to ensure that you are indeed getting a fair price.

What currency are gold prices per ounce offered in?

The US dollar is the standard for international trade, and gold is always traded in US dollars. Even if you’re buying in another nation, the dealer will likely have paid for the gold in a close equivalent amount of US dollars, and then simply translated the price to the currency of the nation in question. For instance, a dealer might offer an ounce of gold in British pound sterling, and you might pay for that gold in British pounds; however, the dealer often originally paid for many of their gold bullion product inventory in US dollars. All gold transactions hinge on the value of the US dollar, no matter where the sale is taking place around the world.

Below is a large percentage change illustration of how various national currencies have lost value to gold bullion in this 21st Century Gold Rush thus far.

 

Is today’s gold price the same in all nations?

Gold price today is ultimately the same in all countries around the world. The gold spot price is converted into other currencies. So, while you might pay more of a particular currency for an ounce of gold in another area of the world, the actual value in US dollars would be the same. If today’s gold price were different in various areas, there would be an opportunity for arbitrage, and that is not acceptable in the gold market, unlike other financial markets like the Forex.

What Factors Affect the Price?

Spend any amount of time studying gold prices and you’ll notice that it changes quite frequently.

It can change by the minute in some instances. It is important to understand the various factors that affect the gold price so that you can study gold price charts including gold price history for a longer period to determine whether now is the right time to make your move.

This applies whether you’re buying, selling or holding gold. Let’s consider some of the most important factors that affected the gold price over recent years.

 

What common factors influence the gold price?

The gold price is affected by a very wide range of factors. This is due to the nature of gold – it’s both a store of value, and a commodity. For instance, supply and demand will affect the gold price in the USA, as well as around the world. If a new gold mine opens and the supply suddenly exceeds demand, then prices should fall. If a gold mine is exhausted and demand remains high, prices should rise. However, other factors that affect gold bullion prices include mint fees, fluctuations in currency, the state of the world’s economy and geopolitical challenges. So, there might be plenty of gold available, but if an unstable situation prevents a mine from transporting the gold out of the country, prices could go up. If the currency in one country becomes devalued to a significant extent, the local price for gold could rise as well.

Does gold fluctuate too much to make it worth the time of an ordinary investor?

While you’ll find major players investing in gold constantly, from big banks and governments to investors like George Soros, it is not too volatile for the ordinary investor to use. By knowing the spot price of gold and historic gold prices, you can track the movement of the metal and make smart investing decisions. Many ordinary investors choose to put a percentage of their wealth into gold simply to protect it from paper dollar devaluation.

Gold is a “store of value” investment. This means that while the gold price might change daily, or even hourly, the value of the gold does not. It protects the money you put into it. This is more important during challenging economic times than it is during the course of normal events.

Does the gold market operate 24 hours per day around the world?

Yes, gold is bought and sold at all hours of the day and night, all around the world. You can get the current gold price per ounce at midnight or sunrise, lunchtime or any other time you need it.

Gold is traded 24 hours per day to ensure that all comers have access to this investment market, including banks, governments, other financial institutions, and investors just like you. The market is active around the clock to guarantee that you can always get an accurate gold price per ounce.

How frequently does the gold ounce price change?

Spend any time studying gold price history or a current gold price chart, and you’ll notice that the gold price changes, and it can do so frequently. The market opens at 6 PM EST and closes at 5:00 PM EST, and operates from late Sunday night when the gold derivative markets open in Asia to late Friday evening when they close in the west. There is a one hour window daily where the market closes on weekdays.

The frequency of these price changes will depend on what events are affecting the live gold price. For instance, breaking news usually has an immediate impact on the market, but other factors can include order flow, supply and demand, mine closures, investor decisions and many others.

How do I compare the current price for gold?

Gold is sold in many different forms, and when comparing or tracking the live gold price, you must ensure that you’re comparing “apples to apples”. For instance, you might find gold offered in both ounces and in grams.

Obviously, the price for each would be different because the weights are not the same. The volume of gold in each option differs. So, comparing the gold price for a troy ounce to the gold price per gram would not do you much good.

Instead, make sure you’re tracking and comparing troy ounces to troy ounces (the standard for gold bullion weights in the US and many other international markets). You also need to remember that even with freshly minted sovereign gold coins like the Australian Kangaroo Gold coin, the price will be higher than the spot price of gold. Again, this is due to the seigniorage and slight premium of the coin on top of the cost of the gold contained within it.

What’s the difference between gold futures and bullion?

Gold futures contracts are really nothing more than promissory notes. They promise that the individual or organization in question will buy or sell a specified amount of gold at a specific time in the future (hence, the name). These contracts may be for a few months down the road, or they may be for years ahead. There are several challenges here.

For instance, the price of gold you’ll pay will be significantly higher than buying just a single ounce (most futures are for 100 troy ounces), and the chance for the price of gold to change between the time you buy your futures contract and when you actually take delivery is high. While there is potential for the price to go up, meaning you’ve saved money, there’s an equally good chance that the price might go down, meaning you’ve paid too much.

Are gold futures the same as buying physical gold?

While gold future prices will be similar to the bullion price, it is important to understand that gold futures contracts are not the same as owning the physical precious metal bullion. While you can technically buy a gold futures contract rather than an actual physical ounce of gold, you’ll ultimately pay more for your purchase in the end. The number of “good delivery” bullion products available in this manner is very limited, and you’ll not only pay the gold bullion price, but also a host of additional fees and charges before you can take delivery of a minimum of 100 oz gold per contract.

Is a gold ETF the same thing as buying physical Gold Bullion?

No, they’re not the same at all. There are actually crucial differences between bullion and ETFs.

Yes, you can invest in gold ETFs if you prefer to perhaps trade in the short term. However, it is important to understand that gold ETF exposure will not provide you with actual gold bullion that you can own and hold outside the financial system. Gold ETFs also always continuously charging fees which can eat into your investment capital over the years. You can find some of those fees, when you learn about the best ways to buy physical gold bullion.

While most gold ETFs are supposedly backed by gold, you will likely not pay the bullion price nor receive any gold bullion at all for your investment. They are priced very differently, and they trade on the market in a completely different manner than physical gold, as well. They’re also affected by other forces, so they may not make a good investment choice for your specific situation. If you’re considering an ETF rather than physical bullion, think long and hard about it. Most investors prefer owning the actual physical precious metal itself. Gold ETFs often obstruct investors from many of the best safe haven aspects which actual gold bullion offers.

Is the price of gold I’m quoted going to be the price I pay?

Gold prices change, and they can change quickly, even by the minute. This makes the prospect of buying gold a little nerve-wracking for some investors new to the process. You might wonder if the price you’re quoted will be the gold price you pay if the prices fluctuate up and down constantly.

The good news is that gold bullion dealers "lock in the price" when your order is placed, so that will be the price of gold you pay regardless of what occurs afterwards. If you’re buying gold online, then you can lock the price in at the checkout page. Then, you’ll have a specific amount of time to make your purchase and keep the current price of gold. If you take too long, the lock-in is removed, and you’ll pay the new price of gold instead (if the gold prices changes during that time frame).

However, understand that not all gold dealers offer online price lock-ins and purchasing options, so verify this before making any purchase decisions.

How do current gold and silver prices relate to one another?

While silver prices are far lower than gold prices, it can sometimes appreciate substantially. Savvy investors should compare the current gold and silver prices to determine the gold silver ratio at the moment. Depending on the results of that investigation, they may purchase gold bullion, silver bullion, or both.

What are the differences in grams and ounces when applied to gold bullion?

All gold prices are based on troy ounce basis. However, you’ll find bars available in gram sizes, as well as kilograms. Understanding how a troy ounce breaks up into these other forms is important to ensure that you’re getting a good deal. A troy ounce is 31.103 grams. So, a one-gram bar is only a very small fraction of a troy ounce. There are 32.151 troy ounces in a kilogram gold bar. It’s also important to understand that a troy ounce is different from a standard ounce. A standard ounce is actually 28.35 grams, so a troy ounce is slightly heavier.

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