Value of Gold Per Ounce ☛
Are you wondering, "what's the price of gold"? The live chart above shows the current spot value of gold per ounce in US dollars. You can change the currency by using the menu at the top of the chart.
As with the other charts located on this site, just hover your mouse over the graph to see the particular price at a given time.
What's the Price of Gold?
You may also manipulate the graph by choosing a specific range of time located at the top of the graph. You can switch to silver prices by clicking the button at the top left.
This chart updates every 10 seconds (you do not have to refresh the page). You may always refer to this page to find the current price of gold at any given time.
Global Value of Gold per Ounce
Gold has been considered as the most popular and the most valued precious metal globally. For centuries it was used as a monetary vehicle. It was also the determinant of wealth of a country.
It was once the standard of value for currencies all over the world. Now that this is no longer the case -- most notably marked by President Nixon taking the USA off the gold standard in 1971 -- investing in gold has become more important than ever.
The price of gold is usually stated in a currency value, usually in US dollars per troy ounce.
What Factors Affect the Price of Gold?
Gold and silver are the most complicated assets to price. Currencies, stocks, and other commodities are primarily contingent on the essential data of the stock, the country involved, and the demand and supply of the various commodities.
However, this does not readily apply to gold; essentially because gold is “money” and is subject to more nuanced influences, not least human psychology.
The following are the main factors that affect the price of gold...
How Does Inflation Affect the Price of Gold?
In the 1970s, US inflation, to be exact, became one of the main determinants of the fluctuations of gold prices. However, emerging markets have grown and now account for over half of the global GDP.
As a result, US inflation does not affect gold as much as it has in the past. The value of gold remains more stable in the long term more than ever. However, since currencies are still subject to high inflation rates, it may encourage investors to buy gold at times when the value of currencies decline.
How Do Global Crises Affect the Price of Gold?
World events directly and indirectly affect gold’s market price. Some actions of the different countries all impact and add up to the price of the precious metal. For example, the value of gold rose sharply after the Russians moved into Ukraine in 2014. The increase was the result of the disruption of geopolitical stability in the region.
How Does US Dollar Value Affect the Price of Gold?
The US dollar is regarded to be the dominant world currency; indeed it is officially the world’s “reserve currency”. Consequently, it is one of the main currencies used by other countries for international trade.
When the value of the dollar weakens, many investors begin shifting to buying gold for security. As a result, the value of gold strengthens. However, at times when the value of the dollar becomes high, the investors would shift from buying gold to investing back into the dollar.
In many ways the price of gold has an inverse relationship with the value of the dollar.
How Does Supply and Demand Affect the Price of Gold?
Gold has always been high in demand, but limited in supply. The production of gold only amounts to 2,500 metric tons per year. This amounts to only 1.5% of the total world supply. It is estimated that the entire world supply of gold equates to about 165,000 tons.
Gold is valued as a precious metal so that regardless of supply, it will always stay high on demand. The high demand for gold is what makes its market price high.
How Does Manipulation Affect the Price of Gold?
The manipulation of the value of gold per ounce in recent years has been the subject of many investigations. One way that the price of gold can be manipulated is by short selling of gold from the reserves, much to the detriment of investors.
Many issues had been brought out through the years. For example, the US Federal Reserve is alleged to be short selling gold to various companies so as to slow down gold investment growth.
Historical Track Record of the Value of Gold
In the early history of gold investment, the value of gold per ounce has been known to remain at the same level for up to two centuries.
In 1717, Isaac Newton, being the master of the U.K. Mint, set the value of gold per ounce at L3.17s.10d. (pounds/shillings/pence). It stayed at roughly the same price for the next 200 years until 1914 (except during the period of the Napoleonic wars from 1797 to 1821).
- The Government of the United States has changed the price of gold per ounce only four times since 1792 to the present.
- In 1792, the price of gold was $19.75 per troy ounce. It rose to $20.67 in 1834. In 1834, it rose again to almost 60%, amounting to $35 per ounce. In 1972, the price was raised to $38 and then to $42.22 in 1973.
- In 1968, a two-tiered pricing system was imposed. As a result, the market price of gold began to increase sharply. Gold value has fluctuated ever since.
- In 1974, the market price of gold soared to $154 per ounce. It stayed in that range for three years.
- In 1979, the price of gold amounted to $306.00 per ounce, skyrocketing to almost 60% from the previous year at which time the price of gold was $193.4.
- In 1980, the value of gold in currency increased by 100% from the previous year. The average price per ounce that year was $615. It was the year of the highest market price for gold ever recorded in history.
- The value declined sharply to $460 the next year. The price stayed stable near at that price range towards the end of the 20th century
- The price of gold declined and stayed slightly stable at price ranges $270-$290 in the years 1998 to 2001
- The demand of gold has been seen to increase in the years that followed, resulting in the uptick of prices in the commodity. By 2004, the average price per ounce of gold amounted to $409.72.
Value of Gold Per Ounce: Things to Remember
Do remember that the value of gold per ounce is always a function of supply, demand and many other factors. Just because the price of gold is high right now does not mean it will still be high about a year from now.
Ten years from now, however, this will likely be a different story. Gold is a long-term investment, and if you are not familiar with the ins and outs of purchasing this type of asset for the long haul, it’s important to consult people who have the knowledge base to help you.
Certain events can also change the current price of gold, so make sure that you keep yourself tuned in to the latest fluctuations to determine the best time to buy.
So, if you arrived at this page asking "what's the price of gold?" then hopefully we've answered that for you!