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How much is gold worth today in euros?

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Do you want to know about the price of gold today and in euros? In this article we will explain how to obtain this information and give you some additional information on the historical evolution of this price as well as the way it is calculated and what influences it.  

Analysis N°1

Global economic health is one of the most influential factors on the price of gold as its value tends to rise when investors lose confidence in other financial markets and because of its special safe haven status.

Analysis N°2

Another element that influences the price of an ounce of gold is inflation. Indeed, gold is used as a hedge against inflation and currency devaluation. Thus, the higher the inflation, the higher the value of gold.

Analysis N°3

The value of the U.S. dollar, the currency in which gold is quoted, will also lead to greater buying or selling of gold in the market because of its exchange rate against other currencies.

Analysis N°4

It will also be necessary to follow the various publications of the American Federal Reserve or Fed, which can generate uncertainties as for the world economic future and which lead to an increase in gold investments. Interest rates will notably increase or decrease the price of gold with an inverse correlation.

Analysis N°5

The increase in the money supply will also indirectly lead to a drop in rates and therefore a rise in gold and will have to be followed closely.

Analysis N°6

Of course, the activity of the gold and gold jewellery industry will have an influence on the demand and therefore on the price of this raw material. In particular, we will follow the demand from certain countries such as India but also the demand from industries for the production of certain products.

Analysis N°7

Finally, it will also be necessary to follow the evolution of gold production in relation to demand. Production tends to fall while demand increases.

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Where to find the gold price today and in euros?

To consult the gold price in real time, several solutions are available to you. You can go to a site specializing in investment in precious metals and consult the "gold price" live.

You can also go to a stock market site or any other site specializing in commodities and financial markets to see a real-time chart of the gold price.

It is also possible to consult this gold price over different past periods in order to understand its evolution over time.

 

History of the gold price since its first quotation :

It was at the end of the gold standard in 1971 that this commodity was quoted in dollars. Since then, the price of an ounce of gold has changed significantly. Between 1971 and 1980, for example, the price rose from 35 dollars to 850 dollars.

We know that certain crises or geo-political events tend to influence the price of gold more or less strongly. This was notably the case after the great oil shocks as in 1974 with a rise of 60% or in 1979 after the Iranian revolution and the second oil shock with an ounce of gold going from 216 to 500 dollars in a few months. In 1980, the ounce of gold will even reach 850 dollars after the invasion of Afghanistan by the Soviets.

This was followed by a less prosperous period for gold until the beginning of the 21st century. Indeed, in September 2001, with the World Trade Center attacks, gold will rebound in the stock market.

For about twenty years now, the price of gold has gained many points. It exceeded 1,553 euros in January 2020, whereas it was only 303 euros in January 2000. Of course, this evolution was made in saw-tooths.

After a slight upward trend between 2000 and 2005, gold began to rise more significantly in 2006. The subprime crisis that began in 2008 only increased the intensity of this trend, with a record high of 972 dollars in February 2008 and 700 euros in January 2009. While the crisis of the euro zone worries more and more the investors in stock exchange, the price of gold continues its blaze and thus reaches the level of 1 373 euros in October 2021 that is to say a gain of 1 000 euros compared to January 2000.

Between 2021 and 2018, the price of gold stagnates again, but in 2018, a new upward trend is taking shape after the decision of central banks to take advantage of stock market prices to strengthen their own gold reserves.

Finally, the beginning of 2020 will see gold experience a new strong upward trend because of the coronavirus pandemic that is impacting other financial markets and the unprecedented economic crisis it is generating. Gold then once again plays its role as a safe haven and reaches the amount of 1,562 euros per ounce in mid-April 2020. In dollar terms, this represents a price of $1,686 per ounce, which is still slightly below its all-time high of $1,899 in 2011.

 

How is the price of gold determined and what influences it?

Since 2004, there is no official gold price in France but the gold price is still calculated by the LBMA or London Bullion Market Association which is the authority dedicated to this value on the financial markets. This association brings together gold traders, manufacturers, refiners and banks such as Goldman Sachs, the Bank of China, HSBC and Société Générale.

The price of gold determined by the London Bullion Market, called the "London Fixing", is calculated twice a day at 10:30 am and 3 pm. This calculation takes into account the supply and demand of gold in the world. We can therefore deduce that the world economic, political and social situation has a strong influence on the price of this value.

Another factor that influences the price of gold to a greater or lesser extent is the demand for precious metals by the jewellery industry and industry. Thus and during certain times of the year, the demand for gold jewellery increases significantly, particularly in India or China, apart from certain crisis situations such as that caused by the coronavirus at the beginning of 2020. However, during this period, the price of gold still managed to rise and reach 1,428 euros per ounce because of the significant risks caused by this health crisis and its impact on the world economy.

As you can see, there are relatively few factors that influence the price of gold, but all of them should be known.

It should also be noted that the London Fixing, which is determined by the LBMA, essentially concerns the price of paper gold or ETFs.

Fortunately, with the growing interest of individuals in investing in gold, it is becoming increasingly easy to know in real time the price of this precious metal, to follow its short and medium term developments and even to consult its historical data from customizable charts. Investing in gold can even be done directly online thanks to the services of specialized brokers who allow you to buy and sell gold without having to own it and therefore store it. This is undoubtedly what explains a large part of the success of this stock market value in recent years.

Frequently Asked Questions

Where and how to follow the gold price in euros?

Most brokers that offer gold trading allow you to access charts quoted in dollars, which is the traditional quotation currency for an ounce of gold, but also in euros if that is the currency you use to trade. Remember that the EUR/USD exchange rate can affect your gold investments here.

How do I make a technical analysis of the price of gold?

To implement a good technical analysis of the gold price, you should use innovative and customizable charts on which you can change the periodicity and display several technical indicators such as MACD, moving averages, RSI or pivot points, support and resistance levels in order to detect relevant trend and volatility signals.

Can we invest in gold in euros?

It is not necessary to change your euros into dollars to invest in gold. Indeed, CFD brokers who offer this type of investment will automatically convert your base currency to the quoted currency of this instrument when you take your position and by applying the current legal exchange rate.

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