Gold prices in USD per troy ounce
The year 2008 held more than one surprise for the economy, and that includes the gold market and gold prices 2008 in particular. With the oil crisis and the value of the dollar continuing its decline, the gold market seemed poised for a year of growth. In addition to these factors, the demand for gold was driven by increasing technological advances and gold accumulation by developing countries. The United States entered into recession at the end of the year and this was visible in gold prices 2008.
In the first quarter of 2008, gold prices increased steadily to a peak of $1,010, up about 19% from their starting price for the year of $850. There was a healthy consolidation at the beginning of March followed by a $47 spike which topped itself and later fell.
Gold prices 2008 struggled during the second quarter. They fell from an April peak of $950 per troy ounce to $850 over the course of two weeks. A strong base moved into a false run-up in the middle of May, which soon fell to its pre-consolidation price. The second quarter ended up only $25 from its starting price of about $900 per troy ounce.
The third and fourth quarters dealt a blow to the positive trend of the previous two quarters. The government poured billions of dollars into investment banks, hoping to at least somewhat mitigate the recession’s impact. Gold prices fell by 30% from their mid-July high of $990 per troy ounce in only two months. Then they rallied from $740 an ounce to $900 in only two weeks. This peak could not be sustained and gold prices 2008 fell rapidly to $710 as fast as they went up. After heavy consolidation and a slow climb, the fourth quarter closed at $870; down by 3% from its starting price of $900.
Gold prices 2008 suffered somewhat unusual conditions. The economic collapse was something only a few experts predicted and virtually no average investor anticipated. The news was not all bad for the investor with a heavy stake in gold, however. While the stock market investor saw his investments fall by more than 50%, the gold investor who invested at the beginning of the year saw gold prices 2008 increase by 2%. There is a fact why gold is sometimes referred to as a “safe haven”.