Understanding today’s gold spot price can keep you informed and help you make sound investing decisions. Gold has been a symbol of wealth for centuries and its benefits as an investment still resonate. That’s especially true during times of economic uncertainty, which is when gold tends to shine as an investment asset due to the unique benefits — like inflation hedging and portfolio risk mitigation — that it offers to investors.
Gold has historically held its value, making it a smart bet for many investors. The price of gold can and will fluctuate in the short term, so it’s important to keep an eye on these changes if you want to buy gold at the right time.
What is the Price of Gold Today?
As of November 15, 2023, the price of gold is $1,970.66 per ounce, according to American Hartford Gold. While that figure represents the market’s assessment of the precious metal’s current value, it’s important to note that gold prices are subject to constant fluctuations due to a variety of factors.
Factors that Influence the Price of Gold
Numerous factors can impact the spot price of gold, including:
- Supply and demand
- Economic conditions
- Inflation
- Interest rates
- Geopolitical uncertainty
- Currency movements
- Market sentiment
- Central bank policies
The price of gold, like any other financial asset, is influenced by a complex interplay of supply and demand dynamics, economic conditions, inflation, interest rates, geopolitics, currency movements, sentiment, and central bank policies. Given that gold’s spot price can fluctuate, investors and enthusiasts should keep a close eye on these factors to make informed decisions regarding their gold investments.
Historical Daily Gold Charts
| Period | Change ($) | Change % |
|---|---|---|
| 30 Days | +44.60 | +2.32% |
| 6 Months | -51.90 | -2.57% |
| 1 Year | +185.10 | +10.40% |
| 5 Years | +751.30 | +61.94% |
| Since 2000 | +1,676.50 | +582.52% |
How to Invest in Gold
Many investors consider gold to be the ultimate safe-haven asset. When the prices of stocks, bonds, and real estate drop sharply, gold may hold its value—and can even appreciate as nervous investors rush in to buy. Owning gold is also a way to add diversification to your investment portfolio.
There are many ways to invest in gold, each with its own pros and cons:
- Gold bars
- Gold coins
- Gold jewelry
- Gold stocks
- Gold futures contracts
- Gold funds
Should You Invest in Gold?
You should invest in gold if you’re looking to hedge against risk or diversify your portfolio. Gold is not your first choice to earn long-term appreciation. Gold prices can be extremely volatile, and that means that gold isn’t an entirely stable investment. In fact, you can easily craft a well-diversified investment portfolio entirely without gold.
Is Gold an Inflation Hedge?
Studies have found that gold may be an effective inflation hedge, but only over extremely long periods of time, measured in decades or centuries. Over shorter time periods, the inflation-adjusted price of gold fluctuates dramatically, making it a poor near-term hedge for inflation.
From 1980 to 1984, annual inflation as measured by the consumer price index averaged 6.5%, but gold prices fell by an annual average of 10% over the same period. Gold’s returns not only fell short of inflation but also underperformed real estate, commodities, and the S&P 500.
Frequently Asked Questions (FAQs)
What is the best way to start buying gold?
Buying shares of a gold ETF is the easiest way to get exposure to gold for beginning investors. Owning physical gold—bars and coins—involves additional costs and risks, while shares of individual gold stocks can also be risky.
How can I buy physical gold at the spot price?
The spot price for gold is the current market price for immediate delivery of gold. This price changes constantly as market participants all over the world trade gold in a wide range of different markets. Online and brick-and-mortar gold vendors use the spot price as a handy reference, but they typically charge a spread fee on top of the spot price.
What determines the spot gold price?
Countless factors go into determining the current spot price of gold at any moment in time. The supply of new gold, demand of gold bullion, and currency fluctuations all play a role, not to mention action in the gold futures and options markets.
Why does buying gold cost more than the spot price?
Vendors add fees and premiums to their gold prices, which is why you cannot really buy physical gold at the current spot price for gold. These additional costs compensate vendors for acquiring, storing, and insuring gold, not to mention funding their profit margin.