Gold Price

How is the price of gold determined?

The price of gold refers to the price at which gold is traded on international markets at a given moment. This price is known as the spot price of gold.

1. The spot price: the global price of gold

Gold is a commodity that is traded continuously on global financial markets, much like oil or certain currencies.

The spot price of gold represents the price at which gold can be bought or sold immediately on these markets.

This price is determined in real time by global supply and demand, including:

  • central banks
  • investors
  • jewelers
  • industrial companies
  • individual investors

Millions of buy and sell orders are executed every day on major financial centers such as London, New York, and Shanghai. The balance between buyers and sellers determines the global price of gold.

The price is generally quoted in US dollars per troy ounce of gold (1 troy ounce = 31.1035 grams).

It is then converted into euros per gram for display on European platforms.

2. Why does the price of gold fluctuate?

The price of gold changes constantly because it is influenced by a range of economic and geopolitical factors, including:

  • inflation
  • interest rates
  • the value of the US dollar
  • economic or geopolitical crises
  • demand from investors and central banks

When investors look for a safe-haven asset, demand for gold often increases, which can drive its price higher.

3. The price used on Kara

On Kara, the gold price displayed in the Market tab corresponds directly to the international spot price, converted into euros per gram.

This means that:

  • when you buy gold, you buy at the spot price + fees
  • when you sell gold, you also sell at the spot price + fees

Kara applies transparent transaction fees, which are clearly displayed before each transaction. For more information, please visit our Pricing page.

4. Why might prices differ on other platforms?

On some platforms or with certain sellers, the displayed price may differ from the spot price for several reasons:

  • the application of a spread (difference between buy and sell prices)
  • margins built directly into the price
  • storage fees included in the price
  • lower liquidity on certain platforms

For example, a platform may display:

  • a higher price to buy
  • a lower price to sell

The difference between these two prices is known as the spread.

5. Summary

  • The price of gold is determined by international markets.
  • It fluctuates continuously according to global supply and demand.
  • This price is known as the spot price of gold.
  • On Kara, purchases and sales are executed at the spot price, with transparent transaction fees.