Today we will look at the very long-term picture of Gold. Gold started its march higher when President Nixon announced the end of the Gold standard in 1971. Until August 15, 1971, the gold price was locked at 35 pr. ounce, but rising inflation in the US caused a run on the gold reserves, which forced the president to cancel the gold standard and let the USD float freely and let gold prices also float freely. This triggered a strong gold rally in the following years until the price peaked at USD 850 pr. ounce in 1980. This rally created cycle wave I and was followed by 20 years of correction to a low of 251 in 1999 as cycle wave II. Over the next 10 years, gold rallied robustly to peak at 1,921 in September 2011 as cycle wave III. For the next 5 years, the gold price plummeted by half to a low of 1,046 in 2016. Since then, we have seen a strong rally to new all-time highs. The current uptrend has lasted for 7 years and the two former rallies lasted both for 10 years, which means we have 3 more years before the peak of cycle wave V should be expected. All in all, we are anticipating the gold rally to a new all-time high of at least 2,400 and likely closer to 2,700 in the coming years.
The material has been provided by InstaForex Company – www.instaforex.com
Today we will look at the very long-term picture of Gold. Gold started its march higher when President Nixon announced the end of the Gold standard in 1971. Until August 15, 1971, the gold price was locked at 35 pr. ounce, but rising inflation in the US caused a run on the gold reserves, which forced the president to cancel the gold standard and let the USD float freely and let gold prices also float freely. This triggered a strong gold rally in the following years until the price peaked at USD 850 pr. ounce in 1980. This rally created cycle wave I and was followed by 20 years of correction to a low of 251 in 1999 as cycle wave II. Over the next 10 years, gold rallied robustly to peak at 1,921 in September 2011 as cycle wave III. For the next 5 years, the gold price plummeted by half to a low of 1,046 in 2016. Since then, we have seen a strong rally to new all-time highs. The current uptrend has lasted for 7 years and the two former rallies lasted both for 10 years, which means we have 3 more years before the peak of cycle wave V should be expected. All in all, we are anticipating the gold rally to a new all-time high of at least 2,400 and likely closer to 2,700 in the coming years.
The material has been provided by InstaForex Company – www.instaforex.com
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