Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

30 Years of Gold – Chart for the Day

3 min read

updated Gold chart From 1972 to 2024 which covers 52 years of Gold Chart

30 Years of Gold Charts

For over three decades, the Gold Chart has been a critical reference for investors seeking stability amidst economic fluctuations. This comprehensive analysis covers 30 years of gold’s performance, denominated in dollars, providing insights into its viability as an investment over time. Historically, gold has been perceived as a reliable store of value, especially during periods of market instability.

Examining the Gold Chart reveals that, from 1980 to 2001, gold experienced a prolonged period of stagnation, failing to yield significant returns for investors. This era was characterized by a sideways bear market, where gold prices did not see substantial growth for over two decades. However, the trend shifted dramatically in 2001, marking the beginning of an extraordinary bull market that lasted for a decade. During this time, gold prices soared by nearly 500% from the bear market’s bottom, climbing from $258 to $1262.

The remarkable surge in gold prices can be attributed to significant gains in specific years, notably 2002 with a 30.6% increase, 2005 with a 35.3% rise, and 2007, witnessing a 42.3% growth. These years were pivotal in contributing to gold’s impressive performance, underscoring its potential as a lucrative investment during favorable market conditions.

The recent peaks and troughs of the gold price occurred at some of the key moments in economic history.

15 AUGUST 1971, GOLD STANDARD ABANDONED
Struggling to pay for the cost of the Vietnam war, President Richard Nixon abandoned the so-called “gold standard”. The dollar had been fixed at a rate of $35 to an ounce. That peg was dropped and gold started to rise.

1974 OIL PRICE SHOCK, INFLATION SOARS
The oil crisis caused a global surge in inflation. In the US inflation hit 11%, and investors bought-up gold to protect themselves.

Gold is viewed as a safer investment because it keeps its value better than many other assets, such as shares.

Gold finished the year 63% higher.

JANUARY 1980, SOVIET INVASION OF AFGHANISTAN
International political tension soared after the Soviet invasion of Afghanistan. Gold hit a record of $850 an ounce on 21 January.

1981-1982, CONFIDENCE RETURNS
Gold prices started to fall as investors regained some confidence in the US economy and the dollar. Inflation also began to slow.

JULY 1986, SOUTH AFRICA
Western nations imposed sanctions on South Africa in protest over its apartheid laws. Gold prices jumped 23% between July and October as traders worried that South Africa might cut gold exports in retaliation.

1987, INFLATION RETURNS
The gold price broke $500 per ounce for the first time in five years as inflation accelerated again in the United States.

JULY 1996-1999, BANKS START SELLING GOLD
Gold prices fell on news that the International Monetary Fund had been considering selling 5 million ounces to help pay for debt relief in the developing world.

Central banks started to follow the IMF’s lead.

The Swiss Central bank announced a plan to sell 1,400 tonnes of gold, Australia also sold a large part of its reserves.

The British government sold more than half of its gold – almost 400 tonnes – of gold between 1999 and 2002 raising $3.5bn.

It was poor timing for all the banks as in July 1999 gold hit a 20-year low of $252.80 an ounce.

AUGUST 2005 HURRICANE KATRINA

Hurricane Katrina boosted oil prices and raised fears that a period of quicker inflation was returning. By December 2005 gold was at $536.50 an ounce, the highest level in 24 years.The weak dollar also helped boost gold throughout 2006.

AUGUST 2007 CREDIT CRISIS
Investors bought gold as a safe haven amid the growing financial crisis. The falling dollar and rising global inflation also boosted the metal.

Indian Gold Historical Data for the past86 years

The above table about historical Indian gold prices depicts a comprehensive table listing the price of 10 grams of gold in India across 86 years, showcasing the long-term trends and historical prices. This data provides a fascinating glimpse into the economic and historical context of India’s relationship with gold, which has traditionally been an integral part of Indian culture and a mainstay in Indian investment portfolios.

From the information visible in the image, it is evident that the price of gold has experienced significant fluctuations over the decades, reflecting various economic conditions, inflation rates, and market demand. Starting from a modest ₹18.75 in 1925, the price of gold shows a gradual increase over the years, with notable price jumps during certain periods.

For instance, in 1947, the year of India’s independence, gold was priced at ₹88.62, which then almost doubled by 1968 to ₹162.00. This increase can be attributed to a variety of factors including the economic policies post-independence, geopolitical developments, and changes in gold’s global demand and supply dynamics.

The trend continues with steady increases throughout the 1970s and 1980s. By 1980, the price had risen to ₹1,330.00, and by 1990 it had more than doubled to ₹3,200.00. This trend suggests that gold was perceived as a hedge against inflation and a safe investment during times of economic uncertainty.

Entering into the 21st century, the price data shows a sharp increase, particularly in the 2000s. By 2011, the price had reached a remarkable ₹26,400.00, indicative of the significant demand for gold, possibly influenced by the global financial crisis of 2008, where investors worldwide turned to gold as a safe haven.

This historical data not only captures the changing value of gold in India but also provides insights into the country’s economic resilience and the pivotal role gold has played in it. Moreover, it offers valuable information for analysts and investors looking to understand the patterns in gold pricing and its potential future trajectory.

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

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7 Replies to “30 Years of Gold – Chart for the Day”

  1. Nice views about Gold Rajendran.
    How does Gold compare with Crude? Do they have positive co-relation?

  2. Great info keep it up, could you consider some nifty based stocks or is it asking for too much. Thanks for the info.

  3. I love the 30 year chart for gold. Beautiful.

    One question, do you know (or have access to) 30 year charts for the rest of the metals and commodities?

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