Gold Price in Euros: Trends, Charts, and Expert Analysis
The constant stream of news regarding global financial markets and crises significantly influences the development of precious metal prices, most notably the gold price.
Investors, traders, and analysts hold diverse expectations and predictions about the future trajectory of the gold price and, consequently, gold investments in the coming months and years.
This article provides up-to-date gold prices, charts, comprehensive information, and gold price forecasts from financial institutions and investment experts. We also include a sentiment barometer to gauge current market sentiment on precious metal price movements. For those interested in purchasing physical gold and silver, this resource also offers a curated selection of precious metal dealers and product details on bars and coins, along with current prices for various precious metal and gold products.
Understanding Gold Price Terminology
| Term | Description |
|---|---|
| Gold Futures | A futures contract, also known as a term contract, represents a standardized agreement to buy or sell an asset, such as gold, at a predetermined future date and price. In gold futures, one contract typically represents 100 ounces of gold. Trading in futures is often referred to as “paper trading.” Due to leverage, trading non-physical futures is considered high-risk. |
| OTC Trading | OTC stands for “over-the-counter,” referring to trading that occurs directly between two parties without the supervision of an exchange. It describes financial transactions that are not conducted on a formal exchange but rather directly between market participants. |
| Spot, Gold Spot | The gold spot price refers to the current market price for immediate delivery of gold. It is the real-time price of gold at any given moment. |
| London Fixing, Gold Fixing, LBMA | The London Bullion Market (LBMA), the world’s most important over-the-counter trading venue for gold and silver, hosts a twice-daily gold price fixing by its member banks. These fixings serve as benchmarks for many participants in the precious metals market. The LBMA coordinates trading and is responsible for certifying gold bars as “London Good Delivery,” a standard of quality and provenance. |
| Real-time Price | A real-time price, also known as a live price, is the current, constantly updated price of gold. |
| XAU | XAU is the ISO 4217 currency code for one troy ounce of gold (approximately 31.1034768 grams). It is derived from “X” and “Au,” the chemical symbol for gold. These codes are standardized by the International Organization for Standardization for unambiguous identification in international financial transactions. |
| Troy Ounce | Internationally, the gold price is quoted per troy ounce. One troy ounce weighs approximately 31.103 grams (exactly 31.1034768 grams). In the precious metals trade, “ounce” and the abbreviation “oz” are commonly used interchangeably with troy ounce. |
| Bid and Ask Prices | Bid price: The highest price a buyer is willing to pay for gold. Ask price: The lowest price a seller is willing to accept for gold. The difference between the ask and bid price is known as the spread. |
| Short/Long | In financial markets, “long” refers to a buyer’s position, indicating ownership of an asset. “Short” describes a seller’s position where they have sold an asset they do not own, known as short selling. |
| Taper, Tapering | In capital market jargon, tapering refers to the gradual reduction of bond purchases by central banks as a monetary policy measure, usually to control inflation or normalize monetary policy. |
| Commodity | Commodities are raw materials or primary agricultural products that can be bought and sold, such as gold, oil, or agricultural goods. Exchange-Traded Commodities (ETCs) are securities that allow investors to invest in commodities. The New York Commodities Exchange (COMEX) is a major commodities futures exchange. |
| NYMEX, COMEX Futures Exchange | NYMEX stands for the New York Mercantile Exchange – the world’s largest commodities futures exchange, where precious metals like gold are traded. Gold was previously traded on COMEX, which merged with NYMEX in 1994. |
| Arbitrage | Arbitrage is the practice of taking advantage of price differences for the same asset in different markets to make a profit without risk. |
| Fat-Finger Error | A fat-finger error is a typing mistake or transposition of numbers that can lead to drastic price movements in financial markets, as has occurred with gold and silver prices in the past. |
| Spike | A spike refers to a sharp, temporary price fluctuation in a chart (e.g., gold price chart), exhibiting an extreme upward or downward peak that quickly reverses. |
Historical Evolution of the Gold Price
Gold is a precious metal that has been used for millennia across various parts of the world as a store of value and wealth. It is one of the first metals humans learned to work with. Gold is relatively easy to process, and its enduring yellow luster, reminiscent of the sun, along with its resistance to oxidation, has made it a favored metal for jewelry for thousands of years. Gold objects were frequently used for religious or ritualistic purposes.
Gold also served as a status symbol in many cultures. This development is observed across the globe, even in cultures that evolved independently. Beyond ritualistic uses, gold also gained monetary significance as a medium of exchange in many societies. Gold coins could be exchanged for various goods. It was only in the nineteenth century, with the rise of paper money as a dominant payment method, that gold began to lose its primary role as currency. This shift is when the gold price truly gained prominence. Before that, gold itself was the currency, and a price for it was not necessary. The introduction of alternative payment methods necessitated establishing a price to trade the value of gold against these new forms of currency. Initially, many currencies relied on the public’s trust in the gold reserves held by the issuing authority. Paper money was essentially a proxy for gold held securely in reserve. While many currencies still maintain gold reserves to bolster stability, their significance is diminishing.
Once currencies were no longer solely valued based on their metallic content, understanding the gold price equivalent of a coin or banknote became crucial. The first official gold price was established in 17th century London and has been fixed there daily ever since.
Factors Influencing the Gold Price and Current Gold Value
Purchasing Gold Bars
Alt text: Secure storage of gold bullion bars, a popular investment option during economic uncertainty, reflecting the gold price in euros.
The gold price is determined by supply and demand, as well as trading on futures markets. As a finite natural resource with limited mining capacity, increasing the gold supply is not easily achievable. Gold mining is a long-term undertaking, making it difficult to quickly adjust gold quantities. Therefore, physical demand, alongside futures markets, is a key determinant of the gold price. A significant portion of gold demand comes from jewelry manufacturing. The metal’s luster and malleability make it ideal for creating high-quality jewelry. Gold jewelry is often a status symbol and holds religious significance in many cultures.
Gold’s use in electronics, while smaller, also influences the price. Gold is an excellent electrical conductor and easily workable. Unlike many metals, gold is highly resistant to corrosion, even in harsh environments like strong acids, making it valuable in specific electronic applications. However, a more dominant factor impacting the gold price is demand from investors. A substantial amount of mined gold is used as an investment and store of value. As more investors choose to allocate capital to this precious metal, demand and prices rise. Economic and geopolitical events also indirectly influence the gold price. Fluctuations triggered by these events are clearly visible in gold price charts.
These charts are readily available on financial websites, often showing the gold price in euros, dollars, and across various timeframes. These curves illustrate gold price movements over customizable periods. For instance, during the Great Depression in the early 20th century, after the 1929 crash, the gold price initially dipped briefly before nearly doubling in the following years. Conversely, slowing economic growth can lead to a noticeable decline in the gold price, as seen in charts from 2011. As economic momentum cooled in China and India, gold demand from these nations decreased, contributing to a global reduction in demand. Another crucial factor is the US dollar and its exchange rate against other currencies, as gold is primarily traded in USD. Fluctuations in the dollar’s value can significantly impact the gold price in euro terms.
Central banks’ gold reserves also play a significant role. Held as a backing for national currencies, even in the absence of a gold standard, central banks periodically buy or sell gold on international markets. These transactions, often involving tons of gold, can swiftly impact the gold price due to their sheer scale.
Gold Price Rises in Times of Crisis
Alt text: Euro gold price chart demonstrating an upward trend, illustrating gold’s role as a safe-haven asset during financial crises, a key consideration for European investors.
During economic crises or periods of significant geopolitical uncertainty, many investors anticipate negative consequences for financial markets and conventional financial products. In such times, investors, both institutional and individual, often turn to gold as a safe-haven asset to protect capital or savings, anticipating a deeper crisis. This surge in gold demand during crises is typically reflected in rising gold prices. When crises subside, the gold price usually reacts with declining prices.
Gold is universally accepted as a valuable asset, preserving savings and purchasing power even through severe crises. While a complete collapse of a currency system is considered less probable today, gold, along with silver, has retained its status as a crisis-proof store of value.
The gold price, and often the silver price, generally increases when instability enters the interconnected global financial system. This trend has been evident for many years. Since the global economy began navigating from one crisis to another around the turn of the millennium, the gold price has been on an upward trajectory, albeit with fluctuations. Additional factors driving the gold price include inflation and negative real interest rates. Since the introduction of the euro in 2002, the gold price in euros has increased by several hundred percent, highlighting its performance as an investment in the Eurozone.