The price of gold has gone up more than 20% this year
The price of a gold bar hit $1 million for the first time on Friday as the metal’s spot price crossed $2,500 per troy ounce (the average gold bar weighs 400 troy ounces) due to strong demand and expectations of the Federal Reserve rate cuts.
The price of the precious metal has gone up more than 20% this year.
Banks and investors see gold as a safer bet because, unlike bonds, the price of the metal usually rises when interest rates fall.
The precious metal also appeals to people as it is seen as a hedge against inflation.