In September 1985, the major industrial nations signed the Plaza Accord, a coordinated effort to weaken an overvalued US dollar. A falling dollar is typically bullish for gold, and the metal found a floor and firmed in the accord's wake after years of decline. The relief was modest and the broader bear market still had years to run, but the Plaza Accord marked one of the few genuine tailwinds gold enjoyed in an otherwise bleak decade.
Key events of 1985
- 1985-09-22
Plaza Accord
Major economies agree to weaken the dollar; gold firms on the prospect.