GoldPrice ConverterLoading live prices…
Gold peaked at $403 on the eve of the Gulf War, then spent 1991 falling as the quick Allied victory, Soviet gold sales, and disinflation dissolved its war premium.
Monthly path for 1991, anchored to the real open ($ 391.00), the high in January, the low in September, and the close ($ 353.00). The dashed line marks the yearly average; intra-year movement between anchor points is illustrative.
Year-over-year, gold fell -9.72% versus its 1990 close of $ 391.00.
1991 opened with one of the most famous “sell the news” episodes in market history. Gold had carried a war premium ever since Iraq invaded Kuwait in August 1990, and it touched about $403 as the deadline for war expired in mid-January. Then the bombing began — and instead of soaring, gold collapsed $30 in a single session as the immediate success of the air campaign convinced markets the war would be short. It never saw $400 again that decade.
The rest of the year was a slow bleed. The disintegrating Soviet Union dumped gold onto the market to raise hard currency before formally dissolving in December, the US slipped into recession with falling inflation, and each rally attempt was weaker than the last. Gold closed near $353, down almost 10% — the clearest sign yet that the metal had entered a structural bear market.
Gold spiked to about $403 in mid-January as Operation Desert Storm began — then fell the moment the air campaign succeeded.
The quick Allied victory in Kuwait erased the war premium built up since Iraq’s 1990 invasion.
The collapsing Soviet Union sold gold heavily for hard currency, and formally dissolved in December.
US recession and falling inflation kept investment demand weak all year.
Gold averaged about $362 per ounce in 1991, peaking near $403 as the Gulf War began in January and sliding to roughly $344 by September before closing around $353.
The threat of war was already priced in. When the January 1991 air campaign proved instantly successful, the fear premium evaporated — a classic case of “buy the rumor, sell the news.”
Gold's 1991 high was about $ 403.00 per troy ounce, reached in January.
The average gold price in 1991 was roughly $ 362.00 per troy ounce — it opened near $ 391.00 and closed around $ 353.00.
Gold fell about 9.7% over 1991, between a low of $ 344.00 and a high of $ 403.00.
Historical figures are approximate annual values shown for educational analysis and may differ from other sources. This is not financial advice — see our disclaimer.