Magnetic materials are usually classified into a distinct category such as diamagnets, paramagnets or ferromagnets. The enormous progress in materials science allows one nowadays, however, to change the magnetic nature of an element in a material. Gold, in bulk form, is traditionally a diamagnet. But in a ferromagnetic environment, it can adopt an induced ferromagnetic moment. Moreover, the growth of gold under certain conditions may lead to a spontaneous ferromagnetic or paramagnetic response. Here, we report on paramagnetic gold in a highly disordered Au–Ni–O alloy and focus on the unusual magnetic response. Such materials are mainly considered for plasmonic applications. Thin films containing Au, Ni and NiO are fabricated by co-deposition of Ni and Au in a medium vacuum of 2 × 10−2 mbar. As a result, Au is in a fully disordered state forming in some cases isolated nanocrystallites of up to 4 nm in diameter as revealed by high resolution transmission electron microscopy. The disorder and the environment, which is rich in oxygen, lead to remarkable magnetic properties of Au: an induced ferromagnetic and a paramagnetic state. This can be proven by measuring the x-ray magnetic circular dichroism. Our experiments show a way to establish and monitor Au paramagnetism in alloys.