A gold bar is currently valued at $1 million.

For the first time, the price of a gold bar has reached a million dollars, driven by a surge in the value of the precious metal.

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Spot gold prices exceeded $2,500 per troy ounce on Friday, setting a new record high. A standard gold bar typically weighs 400 troy ounces, which equates to a million dollars.

Bloomberg News was the first to report this new price for gold bars.

Year to date, spot gold prices have increased by more than 20%. Rising gold prices may indicate that investors anticipate the Federal Reserve will soon lower its benchmark interest rate. Additionally, central banks, especially in China, are purchasing more gold to reduce reliance on US dollars.

Both central banks and investors consider gold a stable, long-term store of value, particularly in times of economic uncertainty. This is because gold prices usually increase when interest rates drop, making gold more attractive compared to bonds.

Investors also view gold as a safeguard against inflation, expecting that bullion will maintain its value even when prices rise.

However, not all gold bars weigh exactly 400 ounces. According to the United States Gold Bureau, gold bars are usually traded internationally by central banks and bullion dealers rather than by individual investors.