Gold bar price reaches $1 million for the first time

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. 

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.