Live Gold Price in GBP

Performance of the price of gold in the past 24h in GBP

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Gold price today by weight and carats per gram in GBP

Gold price is subject to change due to various economic factors and is commonly quoted in different weights (usually ounce, gram, and kilo) and carats (usually 24, 22, and 18 carats).

The historical performance of the gold price in British Pound

This chart displays the historical gold price in GBP, highlighting fluctuations and an overall upward trend in value over time.

Gold Prices Today per Gram by Currency

The price of gold varies depending on whether you're looking at it in British pounds, US dollars, Swiss francs, or Euros. This table allows you to track the gold prices in each currency, and more, as well as their daily performance.

Is GBP backed by gold?

GBP is not backed by gold or any other metals; however, from the early 19th century until 1931, the UK used to operate what was referred to as the 'gold standard', in which the price of gold was fixed to the currency.

What's the relationship between GBP and the gold price?

When GBP gets weaker against USD, the purchasing power of UK investors falls. If USD strengthens against other currencies generally, this means gold becomes more expensive for investors around the world. This could lead to a fall in gold investment and reduce the gold price in GBP and other currencies.

On the contrary, when USD becomes weaker (depreciates), this usually boosts the demand for gold in other parts of the world. That’s because the price of gold in GBP and other currencies becomes more affordable, which increases the purchasing power of investors in the UK, the rest of Europe, Asia, etc, which can raise its price.

What are the current trends in gold prices in GBP?

The gold price in GBP has risen significantly over the last 20 years, steadily increasing from the mid 2000's to the early 2010's before dipping then rising again since 2018 (falling temporarily from 2020 to 2021).

What will the price of gold in GBP be in the future?

No one - even the most intrepid investors - can accurately predict the future price movements of gold in GBP or any other currency. But it’s worth familiarising yourself with some common patterns in GBP gold prices that have appeared throughout history.

Firstly, the gold price in GBP, like any asset, will go down when there is less demand for it. One of the key drivers of higher gold demand is economic uncertainty.

• For example, when UK inflation rises quickly some investors will convert their cash and/or stocks and shares into gold to preserve their wealth.
• But when the economy is performing well, investors may feel more confident about investing in stocks and shares, reducing the demand for and the price of gold.

How do UK-specific economic indicators impact the gold price in GBP?

• Because gold is usually denominated in US dollars, its price is heavily influenced by US and global economic trends.
• However, the UK is still an important centre for global banking and finance with a large London bullion market.
• This means the UK economy is highly integrated into the global economy.

As a result, events in the UK can have repercussions on the rest of the world, including gold prices.

Gold prices in GBP are strongly influenced by the GBP-USD exchange rate.

• If GBP weakens against USD, gold will generally be more expensive for UK investors. For example, if £1 is worth $1.20, a UK investor can buy $1,200 worth of gold for £1,000*.
• If GBP strengthens against USD, the gold price in GBP will generally be cheaper. For example, if £1 is worth $1.40, a UK investor can buy $1,400 worth of gold for £1,000*.

(*for the purpose of these examples, we’re not taking fees or taxes into account)

The Impact of the UK's GDP on the Gold Market

When the UK’s GDP grows:

This means the economy is growing. However, this doesn’t necessarily mean the price of gold in GBP will fall. Even when the economy is performing well, investors may still prefer to invest in gold as a safety net against any future uncertainty.

When the UK’s GDP falls:

This indicates a weaker economy and the potential for a recession (if there are two consecutive quarters of economic contraction). As you might expect, this may prompt more investors to move to gold to protect their wealth, raising the gold price in GBP.

• For example, in early 2024, when economic data revealed the UK had entered into a technical recession, demand for gold rose by 22%.
• Interestingly, around the same time this news was announced, GBP strengthened after the US revealed weak retail sales, and the price of gold in GBP rose.

But remember: because the price of gold is usually denominated in USD, it is mainly influenced by events in the US and the global economy.

The impact of the UK’s inflation rate on the gold price in GBP

When inflation rises, the cost of living increases, and if wages rise below inflation, people will have less disposable income, as their purchasing power in GBP goes down.

• This is when investing in gold can become more appealing, as it has a strong track record of maintaining its value over time and outperforming inflation.
• The growth in demand for gold in the UK and across the world pushes up the price.
• If the USD weakens, the gold price in GBP becomes more affordable (remember that gold is mainly denominated in USD).

The LMBA revealed that the World Gold Council recorded a 7% net increase in overall gold demand from Q2* 2022 to Q2* 2023, when inflation rose in the UK and many other countries.

*Q2 = second quarter of the year (April - June)

Why is gold a good diversification tool?

If you can excuse the pun, one of the 'golden' rules of investing is to never put all your eggs in one basket. For example, it's generally unwise to invest all your money in one industry, market, asset class (i.e. all cash, all stocks) or even one asset (i.e. gold).

Here’s why:

• If you don’t diversify, your investments will be much more vulnerable to any volatility or events that reduce their value.
• For example, if your investment strategies are dependent on the gold price in GBP increasing every year, this would be unsustainable, as such a scenario is very unlikely (commodities are subject to significant short-term price movements).
• Furthermore, without diversification, you are unlikely to benefit from any favourable price movements that occur in multiple asset classes, regions or sectors of the economy.

Diversification is about spreading your risk across different industries, assets, regions, and so on.

• Gold buying is a great way to do this, as it tends to increase in value when the economy is doing badly or when there is a lot of uncertainty.
• The value of stocks and shares often fall in this type of scenario, which is why it might be worth considering allocating a portion of your investments to gold.

How to invest in gold

Investing in gold is accessible to a wide range of investors, not just experts or those with substantial wealth. While gold is a valuable commodity, it's possible to start with smaller investments and expand your portfolio over time. For instance, one could begin by acquiring a collection of 1 gram gold bars, which might cost under £100. However, it's important to stay informed about the current gold price in GBP before making a purchase.

There are primarily two approaches to investing in gold. The first involves physical gold, such as bars and coins. The second option is paper gold, which includes financial instruments like futures contracts and ETFs (Exchange Traded Funds), although it is often reserved for more experienced investors.

Ultimately, purchasing physical gold is one way to hold the asset directly.

How to buy gold in GBP

To buy gold in GBP at GOLD AVENUE, just click on the currency icon in the top right of your screen and select GBP. The price on our website will reflect the latest gold price in GBP and forex (foreign exchange rate).

At GOLD AVENUE, we offer a wide range of gold coins and bullions in different sizes and styles.

Want to learn more about investing in gold? Check out our beginners’ guide!

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