During the 19th and early 20th centuries, many countries adhered to the gold standard, where currencies were pegged to gold at fixed exchange rates. This era was characterized by relative stability in gold prices, as they were determined by government policies and limited by the supply of gold.
The gold standard facilitated global trade and economic expansion, providing a stable foundation for economic growth.
Gold served as a trusted medium of exchange and a store of value, underpinning financial stability and confidence in the international monetary system. The Bretton Woods system collapsed in 1971 when President Richard Nixon suspended the convertibility of the US dollar into gold, effectively ending the gold standard. This marked the beginning of a new era of floating exchange rates and increased volatility in gold prices.
Gold prices surged during periods of financial turmoil and crises, such as the oil crisis of the 1970s, the Dot-com bubble, and the Global Financial Crisis of 2008. Investors turned to gold as a safe-haven asset, driving demand and pushing prices higher.