Gold price in Canada today (XAU/CAD)

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Gold price from 1980 to 2001.

The gold price experienced a downward trend from 1980 to 2001 as the US Federal Reserve responded to economic stagnation by limiting money supply growth. While this initially led to a worsening recession and unemployment, it ultimately helped stabilize the economy and control inflation. In the 1990s, the US experienced a boom under President Bill Clinton’s administration, known as the “New Economy.” The gold price reached its lowest point in July 1999 at $252.80 in London, or $411.23 adjusted for inflation.

To regulate gold sales and the gold price, European central banks signed the “Central Bank Gold Agreement” in 1999, which established limits on gold sales volume. Meanwhile, in China, private ownership of gold was banned until 1983, and the central bank had a monopoly on the precious metal trade. However, the annual issuance of the Gold Panda since 1982 helped stimulate demand. In 2001, the Chinese central bank abandoned its monopoly on gold trading, and the establishment of the Shanghai Gold Exchange led to a significant expansion of gold trading and demand stimulation. As a result, China became the second-largest gold buyer after India in the following five years.

Gold price from 2001 to 2012.

From 2001 to 2012, the gold price experienced a continuous increase. This was due to the growth of US government debt as well as the decline of the US dollar compared to other currencies. The high demand for gold led to the price rising above 500 US dollars per ounce for the first time since 1987 in 2005. On March 13, 2008, the gold price reached 1000 US dollars for the first time in history at the New York Mercantile Exchange (NYMEX).

The 2008 real estate crisis led to the US government taking control of the two largest mortgage companies, Fannie Mae and Freddie Mac. The crisis spread globally as bad loans were sold worldwide. After the fourth-largest investment bank, Lehman Brothers, filed for bankruptcy and the largest American insurer, AIG, was nationalized, the gold price reached its highest daily gain in history on September 17, 2008, in New York.

In 2011, the state of Utah in the United States introduced gold and silver coins as an official form of payment alongside the US dollar. Similar legislative initiatives were submitted for consideration in 12 other US states. In the same year, due to the sovereign debt crisis in the Eurozone, doubts about the US creditworthiness, and the protests in the Arab world, the gold price reached a trading value of over 1500 US dollars per ounce for the first time in history.

Since the outbreak of the financial crisis in 2007 and the sovereign debt crisis in the Eurozone in 2009, the physical demand for gold bars and gold coins was high. Exchange-traded funds (ETFs) also recorded strong inflows. Gold purchases by central banks also increased, particularly in Asian countries such as Mexico, China, Turkey, Russia, Saudi Arabia, Thailand, Kazakhstan, and India. On September 6, 2011, the gold price reached an all-time high of 1920.65 US dollars per ounce in New York.

Gold price from 2012 to 2022.

The price of gold has displayed a volatile pattern since 2012. After remaining at a high level from 2012 to 2013, it declined in 2014 due to the strong US dollar and weaker physical demand for gold. In 2015, the price stabilized at a lower level.

In 2016, the gold price began to rise again, driven by uncertainties surrounding the Brexit vote and the US presidential elections. In July 2016, the price reached a two-year high of over 1350 US dollars per ounce.

In 2017 and 2018, the gold price remained relatively stable as political uncertainties decreased and central banks normalized their monetary policies. However, the price fluctuated due to trade conflicts and geopolitical tensions.

In 2019, the gold price rose again due to the US Federal Reserve’s interest rate cuts and uncertainty related to the US-China trade war. The price reached a six-year high of over 1550 US dollars per ounce in September 2019.

In 2020, due to the COVID-19 pandemic and associated economic uncertainty, the gold price reached an all-time high of over 2075 US dollars per ounce in August. However, the price subsequently fell due to the recovery of the stock markets and the prospect of a COVID-19 vaccine.

In 2021, the gold price remained stable due to uncertainty related to the Delta variant and inflation expectations. However, the price fluctuated due to the US Federal Reserve’s expected interest rate hikes and the prospect of an economic recovery.

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