[9] The song, which features backup vocals by James Taylor and Linda Ronstadt, is one of a series of soft acoustic pieces which were written partly as a result of a back injury.

[10][11] "Heart of Gold" was recorded during the initial sessions for Harvest on February 6–8, 1971, at Quadrafonic Sound Studios in Nashville, Tennessee.

At a January 19 concert (preserved on Live at Massey Hall 1971, released in 2007) he played it on piano, starting with "A Man Needs a Maid" and then segueing into this song.

Young wrote in the liner notes of his 1977 compilation album Decade: "This song put me in the middle of the road.

Young has stated that this song, as well as "Harvest" and "Out on the Weekend" from the same album, were inspired by his then blossoming love for actress Carrie Snodgress.

Upon the single release, Record World said that "Dylanesque harmonica and lyric content give this one more of a folk feel than [Young's] most recent work.