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Analysis of inflation-adjusted trends shows gold unable to break 1980 high Analysis of inflation-adjusted trends shows gold unable to break 1980 high

Analysis of inflation-adjusted trends shows gold unable to break 1980 high

The price of gold has twice come close to the precious metal's 1980 inflation adjusted high, but has not broken it since.

Quick Take

An examination of the real, inflation-adjusted gold prices since 1915, using the headline Consumer Price Index (CPI), reveals a striking pattern of peaks and troughs. Particularly noteworthy is the peak in January 1980, when an ounce of gold reached $2,675, its highest ever in inflation-adjusted terms.

Since then, despite two subsequent peaks in August 2011 and August 2020, at $2,472 and $2,327 respectively, gold has not yet reclaimed its inflation-adjusted high from 1980. This data suggests a significant resistance level for real gold prices, indicative of underlying economic factors and market sentiment that prevent a return to the 1980 high.

As gold is often seen as a hedge against inflation, this trend might also shed light on different periods of economic stability and inflationary pressures.

Gold Price History: (Source:macrotrends.net)
Gold Price History: (Source:macrotrends.net)