Gold () futures opened at $4,001 per ounce on Monday, up 0.5% from Friday’s close of $3,982.20. The price of gold has remained between $3,910 and $4,040 since October 28.
Over the weekend, China announced a change to its gold tax policy. The country formerly allowed retailers to offset a 13% value-added tax when selling gold purchased from the Shanghai Gold Exchange and Shanghai Futures Exchange. The new policy lowers the offset from the full 13% to 6% for some retailers. Those affected are jewelry retailers and sellers that are not members of the exchanges. Share prices for Chinese jewelry stocks fell after the change was announced.
Some analysts have predicted the tax change will result in higher retail prices on gold jewelry in China and, possibly, around the world.
The opening price of gold futures on Monday is up 0.5% from Friday’s close of $3,982.20. Here’s a look at how the opening gold price has changed versus last week, month, and year:
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One week ago: -1.5%
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One month ago: +3.8%
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One year ago: +45.7%
Just last week, the price of gold futures was up 50.5% from one year ago.
24/7 gold price tracking: Don’t forget you can monitor the current price of gold on Yahoo Finance 24 hours a day, seven days a week.
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Learn more: Gold vs. crypto: Which should investors own in debasement trade?
The price of gold can be quoted in multiple forms because the precious metal is traded in different ways. The two main gold prices investors should know about are spot prices and gold futures prices.
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The spot price of gold is the current market price per ounce for physical gold as a raw material, sometimes called 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’d pay to buy gold coins, bullion, or jewelry, since your total price will include a markup called the gold premium that covers refining, marketing, dealer overhead, and profits. The spot price is more like a wholesale price, and the spot price plus the gold premium is the retail price.
Gold futures are contracts that mandate a gold transaction at a specific price on a future date. These contracts are exchange-traded and more liquid than physical gold. They settle on the contract expiration date or earlier, either financially or via delivery. A financial cash settlement involves paying the contract’s profit or loss in cash. Delivery means the seller sends physical gold to the buyer for the contracted price.
Supply and demand determine gold spot prices and gold futures prices. Factors that influence gold supply and demand include:
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Geopolitical events
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Central bank buying trends
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Inflation
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Interest rates
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Mining production
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Whether you’re tracking the price of gold since last month or last year, the price-of-gold chart below shows the precious metal’s steady upward climb in value.
