Value of gold bar hits $1 million for first time ever
The recent highs notched by gold marked first-evers for the precious metal
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For the first time ever, a single gold bar is worth $1 million, thanks to a surge in prices.
Gold bars weighing 400 troy ounces hit the million-dollar mark after the price of the precious metal climbed above $2,500 per troy ounce. However, not all gold bars weigh 400 ounces.
The recent highs are a first for the precious metal.
Gold bars are presented at the German Central Bank in Frankfurt am Main, central Germany on Aug. 23, 2017. (Photo by ARNE DEDERT/dpa/AFP via Getty Images / Getty Images)
Spot gold was up about 1% to $2,563 per ounce as of 10:45 a.m. ET, surpassing a previous record hit on Friday. London's gold price benchmark hit an all-time high of $2,521.55 per ounce at a morning auction on Tuesday, the London Bullion Market Association said.
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Friday marked the first time gold had recorded spot prices above $2,500. Gold prices previously rose above the $2,400-level for the first time in April.
A JPMorgan report published last month said geopolitical risks, inflation hedging and interest rate outlooks have helped feed the gains that gold prices have posted this year.
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JPMorgan researchers said they expect gold to see average prices of $2,600 per ounce by the end of 2025.
A "Fine Gold" mark on a 500-gram gold bar arranged at Gold Investments Ltd. bullion dealers in London, on May 21, 2024. (Photographer: Chris Ratcliffe/Bloomberg via Getty Images / Getty Images)
"The direction of travel is still higher over the coming quarters, forecasting an average price of $2,500/oz in the fourth quarter of 2024 and $2,600/oz in 2025, with risk still skewed toward an earlier overshoot," Gregory Shearer, JPMorgan's head of base and precious metals strategy, said in the mid-July report.
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Other metals also posted gains on Tuesday. Spot silver rose 1.3% to $29.87 per ounce, platinum gained 1.2% to $964.55 and palladium was up 1.4% at $944.75.
Reuters contributed to this report.