Gold is a precious metal whose price varies according to different international situations. How has the price of gold changed over the past 50 years? What factors influence this course? Will the price of gold change in the future? We tell you everything in this article!
Gold price history
During the last 50 years, we can see a certain evolution with regard to the price of gold. Below you will find a brief history of the evolution of the price of gold.
Gold price since 1970
The price of precious metals has increased due to the end of the convertibility of the dollar into gold and the gold standard. The ounce of gold first goes between 216 to 500 dollars. A few years later, the ounce of gold climbed to 850 dollars.
Value of an ounce of gold for 20 years
For 20 years, the price of gold has also increased. The ounce of gold was first worth 303 euros. A few years later, it approaches 321 euros. It then goes to 700 euros. The years pass, and the ounce reaches 1373 euros. Continuing to increase, it reached a record of 1562 euros.
How is the price of gold fixed in euros or dollars today?
The LBMA (London Bullion Market Association) uses the “London Fixing” to fix the price of gold. The latter is established twice a day, at 10.30 a.m. and 3 p.m. It is calculated according to the supply and demand for gold in the world. It should also be remembered that the LBMA establishes the price of gold in paper form (EFTs).
What factors influence the price of gold?
There are a large number of factors that influence the price of gold. Among these factors are:
The geopolitical situation
Despite the various conflicts in the world, the price of gold continues to increase. During the Arab Spring revolutions, for example, gold reached 1920 dollars an ounce.
Contracts for the future are even negotiated by a large number of speculators, betting on the next geopolitical events. We, therefore, deduce that the price of gold is also influenced by the strength of the US Dollar.
The US Dollar
The gold coast is generally studied in US Dollars. The price of gold increases if the dollar is weak, and vice versa. However, this process is not always verified. Sometimes gold in Dollars is matched against gold in Pounds. For a few decades, for example, even if the value of the Dollar has been on the rise, the price of gold Pounds has been higher compared to that of the American Dollar.
Inflation
Inflation also affects the price of gold. The latter devours the purchasing power little by little. Gold lost its value in the 2000s, for example, since that of the dollar was halved during this period.
Will the price of gold change in the future?
Some analysts believe that the price of gold could increase in the future.
For years, gold production has fallen far short of meeting demand. In fact, it is growing more and more. Individuals, emerging countries, banks, all ask again and again.
According to the experts, the imbalance, the monetary injections, the economic crises, the debt problems of the developed countries and the worries of the euro zone could also be the source of the increase in the price of gold in the future.