Gold bar price reaches $1 million for the first time
The price of a single gold bar has crossed the $1 million mark, and it is reported to have been driven by a surge in gold prices.
On Friday, spot gold prices soared to an all-time high of $2,528 per troy ounce, surpassing the previous record of $2,474 set on August 2, 2024. This price hike means that a standard 400-ounce gold bar is now valued at $1,011,200.
This surge in gold prices, which have risen more than 20% this year, is an indication that the Federal Reserve may soon cut its benchmark interest rate.
Antonio Ernesto Di Giacomo, a senior market analyst at XS said, “The historic rise in the price of gold above $2,500 per ounce reflects growing global economic uncertainty and investors’ continued search for safety. With economic, geopolitical, and monetary factors driving this surge, gold is solidifying its position as a safe haven in times of volatility,” he is quoted by the Guardian.
A factor contributing to gold’s record-breaking price is the increased demand from central banks, particularly in China, which are purchasing gold to reduce their reliance on the US dollar.
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Additionally, ongoing volatility in the stock market has made gold an attractive safe-haven asset, with analysts anticipating continued market instability throughout the remainder of 2024.
