On this page you can view the current price of gold per ounce, gram or kilo. Gold is usually quoted by the ounce in U.S. Dollars. The gold price can, however, be quoted in any currency by the ounce, gram or kilo. The price of gold is constantly on the move and can be affected by many different factors.
Is the Gold Price the Same as the Spot Price?
When looking at gold prices, the figures quoted are typically going to be spot gold prices unless otherwise specified. The spot gold price refers to the price of gold for delivery right now as opposed to some date in the future. Spot gold prices are derived from exchange-traded futures contracts such as those that trade on the COMEX Exchange. The nearest month contract with the most trading volume is used to determine the spot gold price.
Why do Investors Care About the Gold Price?
As with any other type of investment, those looking to buy gold want to get the best deal possible, which means buying gold at the lowest price possible. By watching gold prices, investors can look for trends in the gold market and also look for areas of support to buy at or areas of resistance to sell at. Because gold pretty much trades around the clock, the gold price is always updating and can even be viewed in real time.
Why are Gold Prices Always Fluctuating?
The price of gold is in a constant state of flux, and it can move due to numerous influences. Some of the biggest contributors to fluctuations in the gold price include:
- Central bank activity
- Monetary policy
- Interest rates
- Currency market activity
- Inflation/deflation
- Geopolitics
- Risk appetite or aversion
- Jewelry demand
- Investment demand
Currency markets can have a dramatic effect on the gold price. Because gold is typically denominated in U.S. Dollars, a weaker dollar can potentially make gold relatively less expensive for foreign buyers while a stronger dollar can potentially make gold relatively more expensive for foreign buyers. This relationship can often be seen in the gold price. On days when the dollar index is sharply lower, gold may be moving higher. On days when the dollar index is stronger, gold may be losing ground.
Interest rates are another major factor on gold prices. Because gold pays no dividends and does not pay interest, the gold price may potentially remain subdued during periods of high or rising interest rates. On the other hand, if rates are very low, gold may potentially benefit as it keeps the opportunity cost of holding gold to a minimum. Of course, gold could also move higher even with high interest rates, and it could move lower even during periods of ultra-low rates.
Monetary policy can also affect the gold price. If a government is actively engaged in quantitative easing or other stimulus programs, those programs may potentially weaken the country’s currency, possibly making gold more attractive. In addition, such QE programs also add to sovereign debt levels, potentially also making hard assets like gold more attractive.
Is the Live Gold Price Just for the U.S.?
Gold is traded all over the globe, and is most often transacted in U.S. Dollars. Gold can, however, also be transacted in any other currency after appropriate exchange rates have been accounted for. That being said, the price of gold is theoretically the same all over the globe. This makes sense given the fact that an ounce of gold is the same whether it is bought in the U.S. or Asia.
The price of gold is available around the clock, and trading essentially never ceases. While investors in the U.S. are sound asleep, for example, gold trading in Asian markets may be robust. The market is very transparent, and live gold prices allow investors to stay on top of any significant shifts in price.
The current gold price can be readily found in newspapers and online. Although prices per ounce in dollars are typically used, you can also easily access the gold price in alternative currencies and alternative weights. Smaller investors, for example, may be more interested in the price of gold per gram than ounces or kilos. Larger investors who intend to buy in bulk will likely be more interested in the gold price per ounce or kilo. Whatever the case may be, live gold prices have never been more readily accessible, giving investors the information they need to make buying and selling decisions.
The metric system, or International System of Units (SI), is widely used throughout the world. However, the troy ounce, the standard unit of weights for precious metals like gold and silver, is neither part of the metric system nor the “imperial” system used in the U.S.
What is a troy ounce, and how is it different than the traditional ounce used in America?
The Troy Ounce vs. Traditional Ounce
The troy ounce is the standard unit used to weigh precious metals like gold and silver.
A troy ounce, when converted into grams, is equal to 31.103 grams, which makes it heavier and therefore worth more than the traditional ounce, equal to 28.349 grams.
Troy Ounce > Traditional Ounce
A troy ounce is approximately 10% heavier than a regular ounce. An avoirdupois ounce, or traditional ounce, can be converted into a troy ounce by simply dividing it by 0.91.
Troy Pound < Traditional Pound
For every troy pound, there are only 12 troy ounces, making a troy pound lighter than a regular pound, which is 16 ounces. It can be confusing when converting between ounces and pounds, but each system has its own standards.
The avoirdupois ounce is part of the avoirdupois system of measurements, which is commonly known in America via our standard use of ‘ounces’ and ‘pounds’. The troy ounce uses the troy system; one troy ounce is almost 1.0971 avoirdupois ounces. The avoirdupois ounce, simply called an ‘ounce’ in everyday conversation, is used for measuring everything from groceries to body weight in the U.S.
History and Modern Application
The beginning of the troy weight and measurement system is believed to have originated in the French town of Troyes, where English merchants came to trade and barter. They adopted a standardized system of measurements to make commerce easier.
Several traits of this system can also be traced back to the Roman monetary system, where Romans used bronze bars as currency. One heavy bronze bar, called “aes grave”, was equal to 1 pound. The currency was divisible into 12 one-ounce units, called “uncias”, which led to the 12-troy-ounce pound.
The troy weight system was used in many parts of Europe before the metric system. The troy ounce had been used in England since the 1400s and it was adopted officially in 1527.
The troy ounce is principally the same as the British Imperial troy ounce. It is primarily used for measuring expensive metals and gemstones, as opposed to the avoirdupois ounce, which is commonly used for measuring everyday items like food. For this reason precious metals like gold and silver are measured in troy ounces.
Buying Gold and Silver in Troy Ounces
Thankfully, all gold prices and silver prices are calculated in troy ounces.
Having a universal unit of measure when dealing with precious metals is part of what makes gold and silver so liquid. Investors around the world buy and sell gold and silver using the troy ounce system, so there is no need for any other system of measure or conversion standard.
Knowing gold and silver use the troy ounce system is one of the first steps in understanding gold and silver investing. Check out our diverse selection of gold and silver bullion to start your portfolio today. You’ll see that all of our precious metals are calculated in troy ounces so that you get your money’s worth, whether you buy from us or sell to us.