Between 1966 and 2024, the price of gold has seen a remarkable rise. In 1966, gold was priced at around $35 per ounce due to the Bretton Woods Agreement, which fixed its price. However, after the U.S. abandoned the gold standard in 1971, gold prices were allowed to fluctuate, leading to significant increases. By 1980, gold had surged to $850 per ounce, driven by inflation and geopolitical uncertainty.
In the 1990s, prices stabilized between $300 and $400 per ounce, before climbing steadily in the 2000s due to global economic instability, including the 2008 financial crisis. Gold hit an all-time peak of $1,900 per ounce in 2011. During the COVID-19 pandemic in 2020, it briefly surpassed $2,000 per ounce, reflecting its status as a safe-haven asset. By 2024, gold prices hovered between $1,900 and $2,000 per ounce, influenced by inflation concerns and geopolitical risks.
Parallel to the rise in gold prices, U.S. public debt has ballooned from $320 billion in 1966 to approximately $33-$34 trillion in 2024. Key drivers of this debt growth include military spending, tax cuts, wars, economic recessions, and large-scale government programs. The debt surged especially after the 2008 financial crisis and during the COVID-19 pandemic, raising concerns about long-term fiscal sustainability. As interest payments grow, the U.S. faces challenges in managing its future debt load.
This ongoing rise in gold prices and U.S. debt reflects economic uncertainties, geopolitical risks, and broader market trends.