What Is The Current Price of Gold?

solid gold bars and coins

As gold prices fluctuate around all-time highs, more and more people are interested in monitoring gold prices to see just how high it will go. Whether it’s out of curiosity, monitoring an investment, or you’re considering selling your unwanted gold for cash, recent record gold prices are a matter of international interest.

Current Price of Gold: $2,333.20

The price of gold above is updated every two hours to reflect current market rates. The value shown is 1 troy ounce in US Dollars (USD).

Gold Prices Based on Purity

For investment purposes, almost all gold is sold as 24 karat (24k) pure gold, meaning it’s composed 100% of gold. This means if you have any gold bars or gold coins, it’s likely they are made up of 24k gold.

Jewelry, however, is frequently mixed with metal alloys to make it stronger and more resistant to wear and tear. Wearing pure gold just isn’t practical. Most jewelry is mixed with something like copper, nickel, or zinc, which for all intents are purposes are worthless. So when you’re trying to figure out the value of your gold jewelry, you need to understand how much of it is composed of gold, and how much is made of other alloys.

When jewelry is melted down, it’s separated into alloys and gold. Gold buyers, including us here at Cash for Gold Mailer, are paying you for the amount of gold that is left after processing. That percentage of gold is represented as karats (22k, 18k, etc), which is a proportion out of the maximum 24k. So 18k gold is 18k/24k, or 75% gold.

While we use an XRF Analyzer to pinpoint the exact purity of your gold to insure accuracy, it’s expensive equipment. Luckily, most jewelry is marked with its purity, so if you find the marking you can estimate the value of your gold.

The intrinsic value of gold jewelry is then proportional to the karat measurement. To demonstrate this, you can see the value of 1 troy ounce of each:

  • 24k 1 troy ounce: $2,333.20
  • 22k 1 troy ounce: $2,139.54
  • 18k 1 troy ounce: $1,749.90
  • 16k 1 troy ounce: $1,553.91
  • 14k 1 troy ounce: $1,364.92
  • 10k 1 troy ounce: $972.94

Of course, there is more processing involved on gold jewelry when compared to investment-grade gold coins and bullions, so you can expect a lower offer from gold buyers for lower purities.

Ounces vs Troy Ounces

Understanding standard ounces versus troy ounces can be confusing to anyone new to precious metals. Even for experienced investors, it still defies logic a bit. “Troy weights” are an antiquated measurement system that has stuck around in the precious metals business for whatever reason, just as people insist on stubbornly sticking to Fahrenheit instead of switching to Celsius.

The system goes back to the middle ages, originating in the city of Troyes in what is now France (not the Troy of hollowed-out horse fame). What’s important to understand is that 1 troy ounce = 1.09714286 ounces. The price you see above, and quoted whenever people talk about the price of gold, is priced in troy ounces.

In other words, there is about 10% price differential if you’re measuring in standard ounces instead of troy ounces. If you’re measuring in ounces, you’ll subtract 10% from the weight to calculate the value of your gold. On your scale, if it shows 1 ounce, it’s more like 0.9 troy ounces.

Highest Price of Gold

As of writing this on April 18th, 2024, the highest price of gold ever was achieved just last Friday the 12th when gold reached over $2,400 per troy ounce. We’ve come off those highs just a little bit now, but with prices so close and an uncertain future, more highs could be coming.

To learn more about historical gold prices and highs, read our article on the highest prices of gold in history.

What Factors Influence the Price of Gold?

Why gold prices move up and down isn’t an exact science, but there are a lot of factors that influence price movements. Here are a few items that may cause gold prices to change:

  1. Supply and Demand: Like any commodity, the fundamental law of supply and demand plays a significant role in determining the price of gold. Factors affecting the supply of gold include mining output, central bank sales, and recycling of existing gold. On the demand side, factors such as jewelry consumption, industrial use, investment demand, and central bank purchases all influence the overall demand for gold.
  2. Inflation and Deflation: Gold is often viewed as a hedge against inflation, as its value tends to rise during periods of high inflation or currency depreciation. In the current global economic climate (2024), the world is dealing with high inflation (caused by a combination of government spending during COVID, corporate greed, and other factors, depending on which news channel you watch). With inflation high and not coming down as fast as politicians and economists had hoped, it effectively means dollars are losing their value. In these situations, people prefer a commodity with a more stable supply to hedge against this dollar devaluation, so they buy more gold. This is a major reason for the recent increases in gold prices.
  3. Interest Rates and Monetary Policy: The price of gold is inversely related to interest rates, meaning that when interest rates are low, people feel better about investing in gold since they wouldn’t be earning a lot in interest otherwise. Changes in monetary policy, such as quantitative easing or tightening by central banks, can also impact the price of gold by influencing inflation expectations and currency values. What makes it a bit confusing is that interest rates and monetary policy are set, most notably, to fight inflation. The US Federal Reserve anticipated 3 rate cuts in 2024 because they thought inflation was coming under control and wanted to improve growth, but inflation has stayed higher than expected, causing policy uncertainty.
  4. Currency Movements: Since gold is traded globally in US dollars, fluctuations in currency exchange rates can have a significant impact on its price. A weaker US dollar typically leads to higher gold prices, as it makes gold more affordable for holders of other currencies. Conversely, a stronger dollar tends to depress gold prices.
  5. Geopolitical and Economic Uncertainty: Geopolitical tensions, armed conflicts, and economic crises can create uncertainty and instability in financial markets, leading investors to seek safe-haven assets like gold. It’s tough to argue that recent global events aren’t causing uncertainty and contributing to the increase in gold prices. Events such as geopolitical conflicts (Ukraine, Israel), trade disputes (China), or natural disasters can drive up demand for gold and contribute to price increases.
  6. Market Sentiment and Speculation: Investor sentiment and speculative activity in financial markets can also influence the price of gold. Bullish sentiment or increased speculation about future price movements can drive demand for gold, pushing prices higher. Conversely, bearish sentiment or profit-taking by traders can lead to price declines.
  7. Central Bank Policies: Central banks play a significant role in the gold market through their gold reserves and purchasing activities. Central bank purchases or sales of gold can affect the supply-demand dynamics and sentiment in the gold market, influencing prices accordingly.
  8. Technological and Industrial Demand: Gold is not only used for investment and jewelry but also has various industrial applications in electronics, dentistry, and aerospace. Changes in technological advancements or shifts in industrial demand can impact the overall demand for gold and its price.

While there are plenty of factors that can influence price, the prevailing headwinds for gold in 2024 are inflation, interest rates, global conflicts, and economic uncertainty. These variables certainly are related, but there are a lot of reasons for individuals, companies, and even governments to be seeking safe-haven assets this year.

That isn’t to say that the price of gold will definitely continue to rise. Many people are calling it to continue higher (we’ve even seen predictions for $3k this year), but a lot of these factors are already accounted for in the historically high prices. If inflation starts to ebb, global conflicts stabilize, and the Federal Reserve starts lowering interest rates as planned, we could see prices drop.

When is the Best Time to Buy or Sell Gold?

Lots of people like to speculate on whether gold prices are going to increase or decrease. Goldbugs – people who are enthusiastic about gold investments and you’ll often here “gold always goes up” from – love to buy physical gold and are constantly checking the value of their stash. At the moment, they’re probably pretty happy based on recent price movements.

On the other hand, more traditional investors prefer a portfolio that is more focused on equities, which have outperformed gold and precious metal investments historically.

That said, gold can be part of an intelligent investment portfolio as a hedge against economic uncertainty, inflation, or poor equity performance. Discuss with your financial advisor if gold is a useful investment for your situation, and whether you should be buying more or selling some to keep an appropriate balance.

As far as whether it’s smart or buy or sell gold right now as a speculative asset? It’s impossible to say. No one can predict the future, and a lot of tension and uncertainty is already accounted for in the current price.

At Express Gold Cash, we aren’t here to advocate for accumulating more gold or selling all of your gold – our goal is to provide you with the best price and an exceptional experience when you decide to sell your gold, silver, platinum, or other precious metals.

Get Top Dollar for Your Gold at Express Gold Cash

A family-owned business with over 25 years combined experience in the gold buying industry, we’re experts when it comes to gold. From our state-of-the-art processing equipment to friendly customer service, we pay top dollar for your gold and are happy to answer any questions about why your items are priced the way they are.

Our gold packs are fully-insured, discrete packages sent via FedEx, offering a fast, risk-free gold selling experience to our customers. We also offer a 100% satisfaction and price match guarantee, or we’ll return your gold free of charge.

Ready to get top dollar for your gold? Request a free Express Gold kit now!