Gold (GC=F) April futures opened at $5,095 per troy ounce on Monday, down 1.2% from Friday’s closing price of $5,158.70. Gold has declined 4.7% in the past week.
Rising oil prices are a primary catalyst for gold’s pullback. The Middle East war has damaged energy infrastructure and blocked shipping through the Strait of Hormuz, which handles 20% of the world’s oil. Middle East producers are cutting their output in response, prompting a supply shock and sending oil higher than $100 a barrel for the first time since 2022.
President Trump downplayed the oil spike. On Truth Social, he predicted oil prices would fall rapidly “when the destruction of the Iran nuclear threat is over,” but did not provide a definitive timeline for that objective.
Surging oil prices could reignite inflation in the U.S. and globally, which would delay interest-rate cuts. Since gold does not pay a coupon, high interest rates negatively affect the yellow metal’s demand and pricing.
The opening price of gold futures on Monday was 1.2% lower than Friday’s close. Here’s a look at how the opening gold price has changed versus last week, month, and year:
One week ago: -4.7%
One month ago: +1.5%
One year ago: +75.6%
The one-year gain for gold was 95.6% on Jan. 29.
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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.
Learn more: How to invest in gold in 4 steps
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.
Learn more: Thinking of buying gold? Here’s what investors should watch for.
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:
Geopolitical events
Central bank buying trends
Inflation
Interest rates
Mining production
Learn more: Who decides what gold is worth? How prices are determined.
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.
Learn more: Gold alternatives? How to invest in silver, platinum, and palladium.
