from Wall Street Examiner:
Analysts look to the gold price history as a tool to make predictions about the yellow metal’s direction. Investors can use this history as well, to better understand the complexities of the gold market.
A good place to start when examining the gold price history is the 1970s. Up until the early ’70s, gold prices hardly fluctuated by more than a dollar or two.+
You see, the U.S. dollar used to be pegged to gold, and international currencies used to be fixed to the U.S. dollar. Under the Bretton Woods system of international finance exchange, the dollar could be converted to gold at an agreed-upon, fixed rate of $35 per ounce. And the United States was committed to backing every dollar overseas with gold.
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