By 1999, two decades of decline had left gold deeply unloved. The price fell below $260 an ounce to a generational low. Central banks, viewing gold as a sterile relic, were steady sellers; most infamously, UK Chancellor Gordon Brown announced the sale of roughly half of Britain's reserves — about 395 tonnes — near the very bottom, a decision still nicknamed "Brown's Bottom."
But the bottom was in. In September, European central banks signed the Washington Agreement, capping their collective sales and steadying the market. Within two years a new bull market would begin, carrying gold from these lows all the way to $1,920 in 2011. For the full arc, see Gold in the Free-Float Era.
Key events of 1999
- 1999-05-07
Brown’s Bottom
The UK announces the sale of ~395 tonnes of gold near the market’s low.
- 1999-09-26
Washington Agreement
European central banks cap gold sales, steadying the market and marking the bottom.