The Gold Hammer is an early-game hammer, being stronger than the Silver Hammer, but weaker than The Breaker. It has an alternate ore version, the Platinum Hammer, which is slightly stronger. Like all hammers, it is used to remove background walls and create sloped tiles and half tiles.
Its best modifier is Legendary. While Light may seem to provide a better speed boost by percentages, rounding reveals that Legendary and Light mine at equal speeds for this tool.