- Ben Mountifield provides critical analysis of economic events and market trends.
From bear to bull
After reaching a peak of $850 an ounce in January 1980, the price of gold entered a multi-decade bear market, finally bottoming at $255.95 an ounce on 2 April 2001. Since then the price of gold has risen every year, although for those holding gold it has not always been an easy ride.
A history of violence
The gold market has a history of violent moves and 2011 was no
exception. Between 1 July and 6 September 2011, the price of gold shot up from $1478 an ounce to an all-time high of $1923, a rise of over 30 per cent. This near-parabolic rise was followed by an equally violent fall. By 26 September gold had fallen more than 20 per cent to $1535, and investors’ nerves were tested again just a few weeks later when gold fell from $1804 to $1523.