Gold rate / price per gram in European Union

Gold rate (price) in European Union today, 04 Apr 2020. All rates are shown in Euro. Current price of 1 troy ounce(1621.8 USD) and 1 USD rate (0.93 EUR).


24 Kkarat - 48.21EUR
22 Kkarat - 44.2EUR
18 Kkarat - 36.2EUR
14 Kkarat - 28.23 EUR
9 Kkarat - 18.09EUR

Yet, the fundamental and psychological factors that move gold prices are largely unknown or overlooked.

1. Monetary policy/Fed speak

Perhaps the biggest influence on gold prices is monetary policy, which is controlled by the Federal Reserve. Interest rates have a big influence on gold prices because of a factor known as "opportunity cost." Opportunity cost is the idea of giving up a near-guaranteed gain in one investment for the potential of a greater gain in another. With interest rates holding near their historic lows, bonds and CDs are, in some cases, yielding nominal returns that are less than the national inflation rate. This leads to nominal gains but real money losses. In this instance, gold becomes an attractive investment opportunity despite its 0% yield because the opportunity cost of forgoing interest-based assets is low. The same can be said of rising interest rates, which boost interest-bearing asset yields and push opportunity costs higher. In other words, investors would be more likely forgo gold as lending rates rise since they'd be netting a higher guaranteed return.

Federal Reserve commentary can also move the gold markets. The Federal Open Market Committee, which holds meetings about once every six weeks, discusses the state of the U.S. economy and the future of monetary policy. If the FOMC takes a stance that implies rates could rise in the near future, the gold price tend to react poorly since, once again, the opportunity cost of forgoing interest-bearing assets rises. However, if the FOMC insinuates that rates are planning to hold steady, gold prices tend to rise since the opportunity cost of forgoing interest-based assets instead for gold remains low.

2. Economic data

Another driver of gold prices is U.S economic data. Economic data, such as the jobs reports, wage data, manufacturing data, and broader-based data such as GDP growth, influence the Federal Reserve's monetary policy decisions, which can in turn affect gold prices.

Though it's not set in stone, a stronger U.S. economy -- low unemployment, jobs growth, manufacturing expansion, and GDP growth in excess of 2% -- has a tendency to push gold prices lower. Strong economic growth implies that the Fed could make a move to tighten monetary policy, thus impacting the opportunity cost dynamic discussed above. On the flipside, weaker jobs growth, rising unemployment, weakening manufacturing data, and subpar GDP growth can create a dovish Fed scenario on interest rates and increase gold prices.

3. Supply and demand

4. Inflation

5. Currency movements

6. ETFs

7. Uncertainty