Gold rises above $4,200 as Bitcoin, stock futures decline

Gold (GC=F) futures opened at $4,218.50 per ounce Monday, down 0.9% from Friday’s closing price of $4,254.90. In early trading, the price of the precious metal rose to nearly $4,300.

Gold’s latest surge coincides with declines in cryptocurrencies and stock futures — a sign investors may be de-risking their portfolios at the start of December. Earlier this morning, Bitcoin (BTC-USD) was down 5.6% to about $86,000 after eclipsing $126,000 in October. S&P 500 futures (ES=F) were down 0.6% ahead of the opening bell Monday.

Meanwhile, bets are high that the Fed will decrease interest rates by a quarter-point next week. CME FedWatch currently estimates the probability of the rate reduction at 87.6%. Lower interest rates benefit gold prices by reducing the income available from competing, yield-bearing assets like cash.

The opening price of gold futures on Monday was 0.9% lower than Friday’s close. Here’s a look at how the opening gold price has changed versus last week, month, and year:

• One week ago: +3.9%

• One month ago: +4.6%

• One year ago: +60%

On Nov. 14, gold’s one-year gain was 63.4%.

24/7 gold price tracking: Don’t forget you can monitor the current price of gold on Yahoo Finance 24 hours a day, seven days a week.

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Learn more: Gold vs. crypto: Which should investors own in debasement trade?

The price of gold can be quoted in multiple forms because the precious metal is traded in different ways. The two main gold prices investors should know about are spot prices and gold futures prices.

Learn more: How to invest in gold in 4 steps

The spot price of gold is the current market price per ounce for physical gold as a raw material, sometimes called spot gold. Gold ETFs that are backed by physical gold assets generally track the gold spot price.

The spot price is lower than what you’d pay to buy gold coins, bullion, or jewelry, since your total price will include a markup called the gold premium that covers refining, marketing, dealer overhead, and profits. The spot price is more like a wholesale price, and the spot price plus the gold premium is the retail price.

Learn more: Thinking of buying gold? Here’s what investors should watch for.

Gold futures are contracts that mandate a gold transaction at a specific price on a future date. These contracts are exchange-traded and more liquid than physical gold. They settle on the contract expiration date or earlier, either financially or via delivery. A financial cash settlement involves paying the contract’s profit or loss in cash. Delivery means the seller sends physical gold to the buyer for the contracted price.

Supply and demand determine gold spot prices and gold futures prices. Factors that influence gold supply and demand include:

1. Geopolitical events

2. Central bank buying trends

3. Inflation

4. Interest rates

5. Mining production

Learn more: Who decides what gold is worth? How prices are determined.

Whether you’re tracking the price of gold since last month or last year, the price-of-gold chart below shows the precious metal’s steady upward climb in value.