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First you need a furnace, which is made using a crafting table.

Place Cobblestone in the following formation, where X is Cobblestone, O is blank.

XXX

XOX

XXX

Place the furnace. Next you need Gold Ore and a fuel source. Coal is the best, being that it is reasonably abundant and lasts a good length of time. Right click on the furnace to open the smelt menu, place coal at the bottom and the Gold Ore at the top. The ore will gradually smelt into Gold Ingots, remember to keep supplying fuel if you've got a lot to smelt.

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Q: How do you melt gold in Minecraft?
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