Our mission is to make work

We cut through complexity, empowering businesses

Knowing the 1kg gold price is an important benchmark for assessing its worth in today’s age. More than just the cost of a thing, it could tell a lot about the condition of the economic certainty, inflation, and currency fluctuations. Whether it was high or low, the price of gold is something important to track. We know the price of gold is swinging up and down constantly every day. But what really causes it? Who decides it’s worth it? Understanding what influences the gold price could lead to better judgement in handling it. This article will tell you all about it. At the end of this, you will know what determines the 1kg gold price today and even 20 years ago.

How is the 1kg gold price determined in the UK market?

In the UK market, the London Bullion Market Association (LBMA) is primarily responsible for setting the price of 1 kg of gold through its auction process. The LBMA gold price is decided twice daily through electronic auction around 11 am and 3 pm UK time. Major banks, dealers, and refiners set the average price, which mirrors supply and demand. The LBMA price uses one troy ounce of gold (about 31 grams) as its exclusive measurement for precious metals. These prices were first set in US dollars as the dominant world reserve currency. To determine the 1kg gold price in the UK, you can use a gold calculator or do it manually through these steps:

Convert kilogramme to troy ounces by dividing 1 kilogramme by 31 grams; you get 32 troy ounces.
Multiply the LBMA gold price that day by 32 troy ounces.
Convert the USD price to GBP using the current exchange rate, and you will get the 1kg gold price in the UK.

For example, at 1 pm UK time on 2 December 2025, the LBMA price was approximately US$4,222 per troy ounce. Multiply it by 32 troy ounces, which equals 1 kilogramme, and the price will be US$135,104. Convert it to GBP with the current exchange rate, and the final prices will be £102,272.

Another factor that determines the price of gold

Besides the exchange rate against the US dollar, there are other factors for the 1kg gold price, such as manufacturing costs and retailer markups. As a result, it could affect the final price you will need to pay at the end. This process standardised gold pricing while keeping it aligned with real-time market updates.

1kg gold price of gold 20 years ago

Twenty years ago, in 2005, 1kg of gold in the UK would cost around £7,000, a price that showed how low global demand and the economic situation were at that time. Several factors, like the increase in the US external deficit and higher oil prices, contributed to the uncertainty of global worth, leading to lower gold demand. Influenced by inflation, geopolitical decisions, and immense interest from investors, the 1kg gold price today has soared greatly. Over a 14-fold increase since 20 years ago, the price touches roughly around £102,000–£103,000 per kilogramme. Making it more valuable than ever despite small price fluctuations.

The price difference between buying and selling gold

When you decide to sell the gold you have, there will be a 1kg gold price difference compared to when you bought it. The difference is called “spread” or “margin”. Normally, the price you pay when buying is higher due to production, distribution, and profit margin. Whereas when you sell it, you get a buyback price as a result of transaction costs, market fluctuations, and risk covered by the seller. In addition, the purity of your gold could also affect the buyback price. Your 18K carat gold jewellery might get even more spread out compared to when you bought it. Especially if it has a complex design, wear and tear, or lacks a proper hallmarking to verify its purity. Gold content is more valued than the artistic or sentimental aspect. So, keep this in mind when you attempt to sell your gold.

Get the best deal with Hatton Garden Buyers.

Now, it is clear how the 1kg gold price was determined in the UK. It is based on the electronic auction that LBMA does twice every day. According to the economic situation and currency rate, gold prices vary every day. What used to cost £7,000 20 years ago now costs more than £102,000. That is why timing is so crucial in selling and buying gold. To maximise your best price in selling gold, make sure to sell during peak hours (1 pm-5 pm UK time) and get quotes from reputable buyers known for integrity, expertise, transparency, and higher pay-outs, like Hatton Garden Buyers. With our unique buying approaches, we guarantee you a confident and valued selling process. Check out our page for more information!