Gold on the edge of $4,000: what a bar costs in the US today
In short
- Gold is around $4,055 an ounce after touching $4,000.52 on Tuesday on a stronger dollar.
- That is 23.8% below this year’s peak of $5,318 in late January.
- The cheapest 1 oz gold bar at US dealers is $4,082.90 at Gainesville Coins, just 0.7% over spot; the cheapest Gold Eagle is $4,123.88.
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 $4,054.70. The cheapest 1 oz gold bar among the US dealers we track is $4,082.90 at Gainesville Coins – only 0.7% over spot – followed by SD Bullion at $4,099.34. The American Gold Eagle starts at $4,123.88 at Gainesville Coins, 1.7% over spot.
A 100 g bar is cheapest at SD Bullion for $13,180.91, about 1.1% over the value of the metal. US dealers rarely publish buyback prices on their websites, so ask for a firm quote before you sell.
What it means for you
The maths: if gold falls to the $3,886 support level, about 4.2% lower, a 1 oz bar would lose roughly $169 in metal value. A return to January’s peak would add about $1,264 to the same ounce.
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.
Bottom line
Gold is holding around $4,000 but is almost 24% below this year’s peak. At US dealers a 1 oz bar costs under 1% over spot, so the premium is small – compare dealers, since the gap between the cheapest and the most expensive is over 6%.
Sources: Kitco (Reuters) · MarketScreener
Gold prices at US dealers live →
For information only. This is not investment advice.
