Gold on the edge of $4,000: what a bar costs in the UK today

Gold is holding on the edge of $4,000. Last week it fell below that level for the first time since mid-July. The Federal Reserve’s decision on Wednesday is the next test.

What happened

According to Reuters and Kitco, gold fell to $4,000.52 an ounce on Tuesday. The reasons are a stronger dollar and fears that expensive oil will keep inflation high – and high inflation means high interest rates, which is bad for a metal that pays no interest. Today the ounce is around $4,055.

Gold lost 4% last week. Standard Chartered sees the next support at $3,886.

What a bar costs today

According to HawkValue data, an ounce of gold is £3,051.50 in pounds. The cheapest 1 oz gold bar among the seven UK dealers we track is £3,106.42 at Chards, 1.8% over spot. The highest published buyback is £3,005.26 at Tavex. Buy and sell straight away and you lose £101.16, or 3.3%.

For a 100 g bar the lowest price is £9,955.94 at Chards and the best buyback £9,662.13 at Tavex: a £293.81 or 3.0% gap. The Sovereign is cheapest at Gold.co.uk for £738.40 and Tavex buys it back for £707.50, a difference of £30.90 or 4.2%. Sovereigns and Britannias are also free of Capital Gains Tax for UK residents.

What it means for you

The maths: if gold falls to the $3,886 support level, about 4.2% lower, the metal in a 1 oz bar would lose roughly £127. If it returned to this year’s peak, the same ounce would be worth about £3,968 in metal alone.

A surprise towards higher rates from the Fed usually weighs on gold, while a softer tone supports it. Compare prices at every dealer before you buy or sell, or follow the gold price chart.

Sources: Kitco (Reuters) · MarketScreener

Gold prices at UK dealers live →

For information only. This is not investment advice.