How is the gold price determined?
Gold trades around the clock, mainly in the over-the-counter market in London and on futures exchanges such as COMEX in New York and the Shanghai Gold Exchange. In addition, the LBMA Gold Price is set twice a day in London as a benchmark used in many contracts.
As in any market, supply and demand set the price. Supply grows only slowly because new mines take many years to start production. Demand comes from jewellery, central banks, investors buying bars, coins and funds and, to a lesser extent, technology.
What moves the gold price?
Interest rates matter, especially real rates after inflation: gold pays no interest, so it becomes more attractive when other safe assets yield little. The strength of the US dollar also plays a role, as gold is traded internationally in dollars.
In times of crisis, inflation fears or geopolitical tension, gold is seen as a safe haven and demand rises. Central banks have also increased their gold reserves significantly in recent years, which has supported the price.
Gold price in euros and dollars
The world market price of gold is quoted in US dollars per troy ounce. The gold price in euros follows from this dollar price and the current exchange rate. If the euro strengthens against the dollar, the euro gold price can fall even though the dollar price is unchanged, and vice versa.
Gold price per gram, ounce and kilogram
The standard trading unit is the troy ounce, which equals 31.1035 grams. For small amounts the price per gram is easier to grasp, for large bars the price per kilogram. The table above converts the current price into all three units.
Jewellery usually contains less gold: 14 karat gold (585) is 58.5% pure gold, 18 karat gold (750) is 75%. Its material value per gram is the gold price multiplied by the fineness, as shown in the fineness table.
Spot price and purchase price
The price shown here is the spot price, the wholesale price for immediate delivery. When buying bars or coins, investors usually pay a premium for minting, dealing and shipping, and receive somewhat less when selling.
With Spargold you buy gold from €5 and without shipping costs, because the gold is stored directly in an insured vault. You find the current fees on our pricing page.
