Given its position within the global financial system, gold is a precious metal whose price is closely monitored. It is a safe haven that professional and individual investors turn to in anticipation of risks.
From 1879 to 1939, a gold standard regime
The adoption of the gold standard by most countries dates back to the second half of the 19th century, in search of stability in a context of deflation and depression.
Established in 1879: it is a fixed exchange rate regime, which allows countries to make their currencies convertible into a certain amount of gold.
From 1944 to 1971, the Bretton Woods Agreements
In the aftermath of World War II, the Bretton Woods Agreements laid the foundations of the monetary system for the coming years in order to avoid another depression.
This led to the creation of the IMF and the World Bank. Only the dollar was then convertible into gold, and all currencies were convertible into dollars. The prices of gold and the dollar became virtually identical.
Since 1971
The abandonment of these agreements in the early 1970s led to sharp fluctuations in the price of this precious metal. The price of gold is now influenced by international conflicts and oil shocks. It ultimately only increased.
Fixing
Fixing, or the determination of the price, is established twice a day, an "opening fixing" and a "closing fixing." It is calculated based on the supply and demand for gold worldwide.
The gold price is therefore closely linked to the economic, political, and social situation in the world... and it can be significantly impacted, either upwards or downwards, in the event of a crisis.