When Iraq invaded Kuwait in August 1990, oil prices spiked and gold caught a classic crisis bid as investors sought safety. The rally faded quickly once it became clear the conflict would be contained and a US-led coalition would restore the status quo. The episode was a brief flare in gold's long 1990s torpor — a decade dominated by booming stocks, central-bank selling, and a strong dollar that kept the metal pinned near multi-year lows.
Key events of 1990
- 1990-08-02
Iraq invades Kuwait
The Gulf crisis briefly lifts gold before the rally fades.