Gold Price Chronology Chart

1972 Average $58.22, Range: $44.0 - $69.30

The gold price continues to rise throughout 1972.

April: The Soviet Union and South African temporarily stop selling gold. The abrupt curtailment of supply triggers a speculative boom. The price rises from $48.92 on 12 April to $52.90 by 12 May.

8 May: US devalues to the dollar to $38/oz (a two-tier gold market was established in 1968, whereby central banks transacted amongst themselves at the "official" price, while the private sector transacted at the market price).

2 August: The price peaks at $70.0 on 2 August as rumours circulate that some European countries are planning to use a price higher than the official price of $38 in any valuation of reserves.

The gold price ends the year at $64.90, slightly below the peak of $69.30 reached in August, but 47% higher than the beginning of the year.

1973 Average $97.80, Range: $63.90-$127.00

The market becomes very volatile: gold trades in a range of range of $63.90-$127.00.

February: News of the US's vast trade deficit for 1972 sparks massive speculation against the US dollar, pushing the gold price up to $69.20 on 9 February.

12 February: The US announces a further dollar devaluation to $44.22/oz.

2-18 March: Most central banks suspend dealing in foreign exchange markets and adopt floating exchange rate regimes. A lack of confidence in fiat currencies continues to underpin gold demand.

6 July: The gold price reaches an all-time high of $127/oz on 6 July 1973.

6 October: Egypt and Syria launch a surprise attack against Israel on the Jewish holiday of Yom Kippur (the 'Yom Kippur' war).

17 October: The Organization of Arab Petroleum Exporting Countries announcement that it will no longer ship petroleum to nations supporting Israel in the war, leads to a quadrupling in oil prices to $12/barrel. The gold price, which had fallen back below $100 in early October, rallies on safe-haven demand. But the war proves short lived (6 October – 26 October) and the gold price soon falls back below the $100/oz mark.

13 November: The two-tier gold market is formally abandoned.

1981 Average $459.26, Range $391.25-$599.25

The gold price falls almost continuously in 1981, from $597.50/oz at the beginning of the year to $397.50/oz by year end.

January: Paul A. Volcker, then Chairman of the US Federal Reserve bank, comments that he would like to see gold prices lower.

February: The US hostages taken captive at the Iranian embassy in November 1979 are released.

Successive interest rate hikes start to restore confidence in the dollar – the Fed Funds rate peaks at 19% in June 1981 – and by the end of the year, the dollar is around 10% firmer on a trade weighted basis.

1982 Average $375.32, Range $296.75-$481.00

The economic backdrop of easing inflation (US CPI falls to 3.8% by the end of the year from 8.9% at the beginning of the year) and a stronger dollar sees a downward shift in demand for gold. The price continues to fall, reaching $296.75/oz on 21 June 1982,the lowest since 30 October 1978. Gold recovers some its poise in the second half of the year, to close at $456.9/oz.

1983 Average $423.66, Range $374.50-$509.25

February: The gold price falls by over $100/oz in February, as investment demand for gold declines amid what appears to be a new phase of low inflation (US CPI is just 3.5% in January).

Still, a (very) strong start to the year and relatively stable prices thereafter mean the annual gold price averages $423.66/oz, almost $50/oz higher than the previous year.

1986 Average $342.60, Range $284.25-$438.10

4 August: Six members of the Commonwealth impose economic sanctions against South Africa.

2 October: The US Senate votes to override the Presidential veto on the Comprehensive Anti-Apartheid Act and bans major imports from South Africa.

The gold price rallies by 23% between the end of July and the beginning of October over fears that South Africa will retaliate against the west’s economic sanctions by cutting gold exports.

1987 Average $446.19, Range $390.00-$499.75

1987 marks a turnaround for gold, with the price rising above $450/oz for the first time since 1983. The chief reasons appear to be the resurgence of inflation (US CPI is back at 4.4%, having softened to 1.1% a year earlier) and renewed concern over the dollar (the dollar is down around 6% on a trade weighted basis).

14 December: The gold price briefly (on the morning fix) breaches $500/oz for the first time in almost 5 years.

1991 Average $362.26, Range $344.25-$403.00

January: Gold price spikes at the start of the allied campaign in January 1991 to $403/oz, but quickly falls back again on the allied victory to $366/oz by the end of January.

The gold price remains low and in a narrow trading range for the rest of the year ($344.25/oz-$372.20/oz), as demand is discouraged by the relative stability of the worldwide economy and lower inflation.

1993 Average $359.82, Range $326.10-$405.60

July: The gold price climbs back above $400/oz in July for the first time in 30 months, thanks to a combination of strong physical demand, a lack of central bank selling and producer hedging, as well a resurgence in inflation fears.

The gold price ends the year 17.4% higher, at $391.75/oz.

1996 Average $387.87, Range $367.40-$414.80

5 February: The gold price rallies in early 1996 as Barrick announces it has reduced its hedge by a third to two years worth of hedging. Gold reaches $414.80 in early February, a six-year high.

July: The price comes under pressure later in the year on news that the IMF is mulling the sale of 5 million ounces of gold over a period of time to help pay for debt relief of the world's highly indebted nations. The price ends the year $6 lower, at $387.82.

1997 Average $330.98, Range $283.00-$362.15

A rise in scrap sales during the Asian crisis and continued selling from the official sector keeps the gold price under pressure in 1997.

July: The price drops sharply in July after the Australian Reserve Bank announced it has sold two-thirds of its gold reserves.

October: Gold sells off again in October after a Swiss government advisory group recommends the National Bank sell 1,400 tonnes of gold.

12 December: The price falls to a decade low of $283.00

1999 Average $278.57, Range $252.80-325.80

20 July: Expectations that the IMF will sell gold to support highly indebted countries, substantial producer hedging and the UK Treasury's announcement on May 7th of its intention to sell 415 tonnes of gold in 1999 and 2000 combine to push gold down to a 20-year low of $252.80 in July.

October: The price rebounds somewhat on the back of the Central Bank Gold Agreement (CBGA) announcement on 26 September 1999, which limits central bank sales to 400 tonnes over the next five years. The price rises to $325.80 in October, but eases again later in the quarter to end the year at $290.25.

2000 Average $279.11, Range $263.80-312.70

February: The price rallies to $312.70 in February, as producers start to cut back their hedge books. But the rally proves short-lived and by mid-April the gold price has given up all of January and February’s gains, trading as low as $275.05.

The strengthening in the dollar keeps downward pressure on gold for the rest of the year; the gold price ends the year at $274.45.

2001 Average $270.98, Range $255.95-$293.25

May: The price rallies in May when Australian-owned Centaur Mining collapses and rumours emerge that its large hedge book will be bought back.

September: The price of gold – alongside that of other safe-have assets – rallies in September, after the 9/11 terrorist attacks. But the rise proves short-lived and the gold price ends the year at $276.50/oz, with the average annual rate easing to $271.04, the lowest since 1978.

2006 Average $590, Range $524.75-$725.00

H1: The price rallies almost continuously in H1, as investor demand is supported by new products, such as the developing EFT market, and the economic backdrop of a weaker dollar and rising inflation. The investor base also broadens with pension funds taking an increasing interest in gold as a portfolio diversification tool.

Official sector sales are estimated by GFMS Ltd at 215 tonnes for the first half year against 412 tonnes in the first half of 2005. High prices attract increased scrap recycling while jewellery fabrication drops by 28%.

January: The BT pension fund announces its attention to diversify 3% of its funds under management into commodities. A similar announcement from Sainsbury’s follows soon after. The French Pensions Reserve fund states that it is to seek permission from its supervisory board to invest in commodities.

26 January: Hamas wins the Palestinian elections.

4, 5 July: North Korea tests nuclear missiles.

12 July: Israel attacks Lebanon.

9 October: North Korea conducts a nuclear weapon test.

2007 Average $695.39, Range $608.40-$841.10

In the first half of the year the gold price fluctuated in a tight range of $608.40-$691.40. But the position changed in Q3, with the price rallying to a 27-year high of $743.00/oz, as investors flocked to gold as a safe-haven asset amid the growing turmoil in credit markets. The weakness of the dollar, which slipped below 1.40 against the euro for the first time ever, also underpinned demand for gold as a dollar hedge. The price remained on a firm upward trajectory during Q4, to end the year at $833.75/oz for largely the same reasons.

June: The credit crisis starts to rumble, as news emerges of heavy losses made in the US sub-prime mortgage/collateralised debt market at two Bear Sterns managed hedge funds.

Q3 The credit crisis intensifies in July and August, before exploding in September. Interest rates in the interbank market spike aggressively upwards, as banks become increasingly wary about counterparty risk, sparking a classic textbook credit crisis. Northern Rock experiences the first run on a UK bank in over a century. The safe haven bid for gold begins.

The US Federal Reserve Bank cuts interest rates in an attempt to ease credit conditions. This pushes the dollar to a 26-year low against sterling and a record low against the euro. Investors flock to gold as a means of protecting against dollar weakness.

Q4 The price continues to be driven by the behaviour of investors who buy gold as a means of hedging against dollar weakness, rising inflationary pressures and heightened geopolitical and financial sector risks.

2003 Average $363.32, Range $319.90-$416.25

December: The gold price remains on firm upward trajectory in 2003, supported by a continued reduction in producers' hedge books, growing concerns over the US imbalances and the related implications for the dollar, as well as rising geopolitical risks, culminating in the US-led invasion of Iraq.

2004 Average $409.17, Range $375-$454.20

The price climbs higher in 2004, to an average $409.17 from $363.24 the previous year, supported by favourable supply dynamics: supply from official sector sales, scrap and mine production all decline, while producer de-hedging reaches record levels.

November: Investor interest in gold continues to rise driven partly by the build up to the November launch of the streetTRACKS® ETF in New York. Growing concerns over US imbalances also keep downward pressure on the dollar, supporting demand for gold as a hedging tool.

2005 Average $ 444.45, Range $411.10-$536.50

Prices are broadly stable in the first eight months of the year, capped by a rise in net official sales.

August: Hurricane Katrina triggers a marked rise in oil prices, boosting inflation expectations and demand for gold as an inflation hedge.

December: The desire to hedge against inflation and dollar devaluation continues to support gold demand. The developing EFT market helps to broaden the investor base. The gold price reaches $536.50/oz in December, the highest since March 1981.

1975 Average $160.90, Range $128.75-$185.25

January: The US abolishes restrictions on citizens buying, selling or owing gold and holds its first gold auction. The auction is poorly received, with bids received for less than half the 2 million ounces for sale.

31 August: The G10 agree that the total stock of gold held up the IMF and monetary authorities of the G10 will not be increased. The IMF's Interim Committee subsequently agrees to dispose of 50 million oz (one third ) of the Fund's gold. The gold price falls to $128.75 within weeks of the announcement, the lowest price since January 1974.

1978 Average $193.41, Range $160.90-$242.75

October: Heightening concerns over inflation and the value of the US dollar underpin demand for gold as a store of value and risk management tool. Rising investor interest is reported from the Middle East. The gold price reaches an all-time high on 30 October 1978 of $242.75/oz.

1979 Average $304.68, Range $216.85-$512.00

The price hits another record in 1979, as economic conditions remain supportive and war breaks out in the Middle East.

January: The Iranian revolution

4 November: 66 diplomats and citizens of the US are taken hostage in the US embassy in Tehran

25 December: The Soviet Union invades Afghanistan

28 December: Gold ends the year at $512/oz.

1980 Average $614.50, Range $481.50 - $850.00

The gold price hits a record for the third consecutive year.

January: The Soviet invasion of Afghanistan dominates the world’s financial markets. Gold hits an all-time high on 21 January of $850/oz (and one that is ultimately to prove more enduring).

7 May: The IMF completes its 5-year gold sales programme

22 September: Iraq invades Iran (the first Gulf War), leading to a further rise in oil prices and inflation.

1974 Average $158.93, Range $116.50-$195.25

The gold price continues its upward trajectory supported by political turmoil in France (the government resigns in February and President Pompidou dies in April) and the global economic backdrop.

The quadrupling in oil prices pushes up global inflation (US inflation almost doubles in a year, with the CPI rising to 11% p.a in mid-1974), further eroding confidence in paper money and boosting demand for gold as an inflation hedge. The gold price ends the year 63% higher.