Let's look at the first gold bull market, which came into being after the end of World War II. At that time, the United States was traumatized by the post-war economy, with a serious fiscal deficit and a devaluation of the US dollar. As a result, governments around the world began to exchange gold madly to ensure that their finances would not depreciate, and the US gold reserves began to plummet. At this time, then US President Nixon closed the window for exchanging gold. 1972, the price of gold gradually rose to 64 USD/Ang, near 1978, and even rose to 244 USD/Ang, which also reached a new high.
The second gold bull market was also due to the depreciation of the US dollar. As we all know, in 2008, the global subprime mortgage crisis was staged, the stock market plummeted, the market fluctuated and the oil price gradually fell. Therefore, the Federal Reserve announced the first round of quantitative easing policy, and then the economy gradually recovered. Until the second round of quantitative easing, the price of gold has reached 1.386 USD /Ang. By 20 1 1, with the support of loose monetary policy, the price of gold also broke through the historical high, staying at 1574 USD/oz. Later, the outbreak of war lowered the credit rating of the United States, and then the price of gold also hit a new high 1920 USD/oz.
In fact, it is not difficult to see that the arrival of the two gold bull markets is related to the Fed, but you will find that behind the Fed's interest rate hike, it is actually more driven by the rising market of the US dollar index. It has been nine years since the last bull market of gold, and the international gold price has also improved. As for when the third big bull market of gold is, we will wait and see.