Gold's recent rally only ranks third in last 50 years

Gold's recent retreat from a record high has led to questions as to whether the precious metal has run out of steam and is due for an extended period of sideways trading, as has happened in the past.

- Clyde Russell

A gold seller arranges gold bracelets at a gold shop in Chinatown. REUTERS

(REUTERS)

It's certainly the case over the last 50 years that whenever gold has enjoyed a surge in prices it has then suffered long periods where it has generally trended weaker.

But it’s also worth noting that the current rally is only the third-strongest in terms of the percentage gain in the past 50 years, and is actually well behind the price increases recorded in the late 1970s and again in the 2000-2011 uptrend.

The current rally started in October 2022 when the spot price was around US$1,617 (52,324 baht) an ounce and initially the uptrend was gentle, before accelerating dramatically from November 2024 onwards after the election of Donald Trump to a second term as US president.

The precious metal reached an all-time high of $4,381.21 an ounce on Oct 20, taking its gain since October 2022 to 170%.

It has since slipped back to end Wednesday’s trade at $3,978.63 an ounce.