Gold prices surged to unprecedented levels, reaching an all-time high of $5,600 per ounce on January 29 before easing to just under $5,000 on Sunday. The surge reflects growing investor demand for gold as a secure asset amid fluctuating economic conditions and rising geopolitical tensions. Al Jazeera’s explainer details how gold’s value is determined by its weight in troy ounces and purity in karats, with one troy ounce equaling 31.1035 grammes.
Gold’s global pricing is set on spot markets in US dollars, primarily through exchanges in London and New York. Local prices vary due to currency conversion, dealer premiums, and taxes. For instance, India imposes a 3 percent GST on gold, while the United Kingdom and United Arab Emirates levy none. The United States holds the world’s largest gold reserves at 8,133 tonnes, followed by Germany with 3,350 tonnes and Italy with 2,451 tonnes.
Over the past decade, gold’s price has quadrupled from $1,250 in 2016 to around $5,000 today, underscoring its enduring role as a safe haven asset during periods of market volatility and uncertainty.
Share Interest in gold has skyrocketed in recent weeks, with the price of one ounce hitting an all time high of $5,600 on January 29 before settling back to just under $5,000 on Sunday. As economic conditions fluctuate and geopolitical tensions rise,
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