Gold (GC=F) April futures opened at $5,095 per troy ounce on Monday, down 1.2% from Friday’s close of $5,158.70. The price of gold has decreased by 4.7% in the last week.
Rising oil prices are the primary catalyst for gold’s recovery. The Middle East conflict has damaged energy infrastructure and blocked shipping through the Strait of Hormuz, which handles 20% of the world’s oil. Middle Eastern producers are cutting output in response, prompting a supply shock and sending oil above $100 a barrel for the first time since 2022.
President Trump lowered oil prices. In a truly social twist, he predicted that oil prices would fall sharply “once the Iranian nuclear threat is eliminated,” but did not provide a specific timeline for that goal.
Rising oil prices could revive inflation in the United States and globally, which would lower interest rates. Since gold does not pay a coupon, higher interest rates negatively affect the demand and price of the yellow metal.
Gold’s opening price on Monday was 1.2% lower than Friday’s close. Here’s a look at how gold’s opening price has changed over the past week, month and year:
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A week ago: -4.7%
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A month ago: +1.5%
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A year ago: +75.6%
The one-year gain for gold as of January 29 was 95.6%.
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The price of gold can be quoted in many forms because the precious metal is traded in different ways. The two main gold prices that investors need to know about are spot prices and gold futures prices.
learn more: How to invest in gold in 4 steps
The spot gold price is the current market price per ounce for physical gold as raw material, sometimes referred to as spot gold. Gold ETFs that are backed by physical gold assets generally track the gold spot price.
The spot price is lower than what you would pay to buy gold coins, bullion, or jewelry, because your total price will include a markup called the gold premium that covers refining, marketing, dealer overhead, and profit. The spot price is the same as the wholesale price, and the spot price and the gold premium are the retail price.
learn more: Thinking of buying gold? Here’s what investors should be looking for.
Gold futures are contracts that order the delivery of gold at a specified price on a future date. These contracts are exchange traded and are more liquid than physical gold. They settle on or before the end of the contract, either financially or by delivery. A financial cash settlement involves the payment of contract benefits or losses in cash. Delivery means that the seller sends the physical gold to the buyer for the contracted price.
Supply and demand determine gold spot prices and gold futures prices. Factors that affect the supply and demand of gold include:
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Geopolitical events
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Central Bank Purchase Trends
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inflation
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Interest rates
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Mining production
learn more: Who decides what gold is worth? How rates are determined.
Whether you’ve been following the price of gold for the past month or year, the gold price chart below shows the precious metal’s steady rise.
learn more: A substitute for gold? How to invest in silver, platinum and palladium.
The price of gold
