U.S. spot gold hit a new record above $1,203 per ounce on Wednesday, marking an all-time high for the second straight day as weakness in the dollar spurs buying of the precious metal as an alternative investment.
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Here are the key dates tracing gold’s historic rise above $1,000 an ounce.
* August 1971 – United States President Richard Nixon takes the dollar off the ‘gold standard’, which fixed paper notes’ value to a pre-set quantity of gold. It had been in place, with minor modifications, since the Bretton Woods Agreement of 1944 fixed the conversion rate for one troy ounce of gold at $35.
* August 1972 – U.S. devalues dollar to $38/ounce of gold.
* March 1973 – Most major countries adopt floating exchange rate system.
* May – U.S. devalues dollar to $42.22 per ounce.
* January 1980 – Gold hits record high at $850 per ounce. High inflation because of strong oil prices, Soviet intervention in Afghanistan and the impact of the Iranian revolution, prompts investors to move into the metal.
* August 1999 – Gold falls to $251.70 on fears of central banks reducing reserves, and mining companies selling gold in forward markets to protect against falling prices.
* October 1999 – Gold reaches a two-year high at $338 after agreement to limit gold sales by 15 European central banks. Market sentiment toward gold begins to turn more positive.
* February 2003 – Gold reaches a four and a half year high on safe-haven buying in run-up to conflict with Iraq.
* December-January 2004 – Gold breaks above $400, levels last traded in 1988. Investors turn to gold as risk insurance.
* November 2005 – Spot gold breaches $500 for the first time since December 1987, when spot hit $502.97.
* April 11, 2006 – Gold surpasses $600, the highest since December 1980, with funds and investors jumping into commodities on a weak dollar, firm oil prices and geopolitical worries.
* May 12 – Gold prices peak at $730 an ounce with funds and investors pouring money into commodities on a weak dollar, firm oil prices and political tensions over Iran’s nuclear ambitions.
* June 14 – Gold falls 26 percent to $543 from its 26-year peak after investors sell out of commodity positions.
* November 7, 2007 – Spot gold hits 28-year high: $845.40/ounce.
* January 2, 2008 – Spot gold breaks above $850.
* March 13 – Benchmark gold contract trades over $1,000 for the first time in the U.S. futures market.
* March 17 – Spot gold hits an all-time high of $1,030.80 an ounce. U.S. gold futures touch record peak of $1,033.90.
* September 17 – Spot gold rises almost $90/ounce, a record one-day gain. Investors seek safety amid equity market turmoil.
* February 20, 2009 – U.S. gold futures rise back above $1,000 an ounce to a peak of $1,005.40 as investors turn to gold as major economies face recession and equity markets tumble.
* September 8 – U.S. gold futures hit $1,000 an ounce for the first time since February as the dollar’s weakness, concerns about the sustainability of global economic recovery and worries about future inflation underpinned sentiment. [ID:nSP480333]
* November 3 – Gold crests $1,080 an ounce, defying dollar strength as the International Monetary Fund’s 200-tonne sale of gold to India’s central bank boosts sentiment.
* November 6 – New York gold futures rise to a record above $1,100 as the dollar eases in the wake of weaker-than-expected U.S. non-farm payrolls data, while spot gold hits a record high at $1,100.90 an ounce. [ID:nL6697824]
* Nov 26 – Spot gold rises above $1,192.60 per ounce, extending gains from the day before.
* Dec 1 – Gold hits record highs of $1,198.70 an ounce in Europe, as the dollar weakens against a basket of currencies after policy comments from the Bank of Japan.
* Dec 2 – U.S. gold futures rise to a record high above $1,210 per ounce, while spot gold rises above $1,203 per ounce.
Sources: Reuters, GFMS Ltd, World Gold Council, Commodity Research Bureau
(Compiled by Jan Harvey; Editing by Gillian Murdoch and Clarence Fernandez)
