Gold Bar Price Hits Million Dollar Milestone Amid Soaring Prices
For the first time ever, the price of a standard gold bar has surpassed a million dollars, fueled by a surge in gold prices, CNN reports.
Spot gold reached a record high of over $2,500 per troy ounce on Friday. Given that an average gold bar weighs 400 troy ounces, the price calculation easily reaches the million-dollar mark.
Gold prices have seen a dramatic increase this year, rising more than 20% year-to-date. This upward trend is seen as a sign that investors anticipate a reduction in the Federal Reserve’s benchmark interest rate in the near future. Central banks, particularly in China, are also increasing their gold reserves to lessen their reliance on the US dollar.
Central banks and investors alike view gold as a reliable long-term store of value, especially during periods of economic uncertainty. When interest rates fall, gold becomes more attractive than bonds, leading to a rise in gold prices.
Investors also consider gold a hedge against inflation, betting that its value will hold steady as prices rise.
While not every gold bar weighs exactly 400 ounces, the United States Gold Bureau notes that these bars are typically traded internationally by central banks and bullion dealers, not by individual consumers.
