New York
CNN
—
The price of a gold bar has reached $1 million for the first time, thanks to the rise in the price of the precious metal.
Spot gold hit an all-time high of more than $2,500 an ounce on Friday. The average weight of a gold bar is 400 Trojan ounces — that’s worth $1 million when you do the math.
Bloomberg News First Reported Gold bar price.
Spot gold prices have risen more than 20% since the start of the year. Higher gold prices may be a signal that investors expect the Federal Reserve to cut benchmark interest rates soon. Central banks, led by China, are also buying gold to ease their reliance on the U.S. dollar.
Central banks — and investors — see the precious metal as a reliable long-term store of value during periods of economic turmoil. That’s because gold prices tend to rise when interest rates fall, making bullion more attractive than bonds.
Investors also view gold as a hedge against inflation, betting that bullion will hold its value when prices rise.
Of course, not every gold bar weighs exactly 400 ounces. The U.S. Gold Bureau notes that gold bullion is typically traded internationally by central banks and bullion dealers, not by individuals.
John Towfighi contributed to this report.
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