A gold bar is now worth a cool $1million as prices keep rising

Alameen Templeton

For the first time ever, a standard bar of gold is worth a cool one million dollars (R17.87million).
And, market commentators expect the gold price to continue climbing, with the US Fed expected to make three more 25 basis point interest rate cuts this year.
Coincidentally, Citibank has said it expects the SA Reserve Bank to follow suit, underlining just how much the local bank has become hostage to carry trades.
The milestone was reached Friday, when bullion’s spot price surpassed $2 500 a troy ounce, an all-time high. With standard gold bars typically weighing about 400 ounces, that would make each one worth more than $1 million.
The rising streak continued Tuesday, hitting a new all-time high of $2,510,56 at 5.45pm local time.
Central banks have been first in on the action. In the first half of 2024, their net gold purchases stood at 483.3 tons – almost 40,000 bars, Bloomberg reports. That’s one of the factors driving gold’s blistering rally this year, along with expectations of continuing looser monetary policy from the US Fed.
Investors Tuesday awaited US Federal Reserve minutes and Chair Jerome Powell’s speech for indications on how much the central bank will cut rates this year.
“Gold prices have been largely steady in the Asian session, seemingly catching a breather as buyers seek to defend its new record high,” IG market strategist Yeap Jun Rong told Reuters.
“The broader upward trend for gold remains intact, which could see prices eye for a move towards the $2,665 level from a technical perspective.”
Safe-haven demand stemming from the tensions in Arabia have also driven prices higher.
Interest-free bullion’s appeal tends to shine in a low interest rate world and expectations are that will continue for a good few months at least.
So, if you’re planning an umrah or trip overseas in the near future, you may want to buy gold now.
Traders will be watching the minutes of the Fed’s July policy meeting on Wednesday and Chair Jerome Powell’s speech at the Jackson Hole symposium Friday for further hints, Reuters says.
Continuing dollar weakness is also helping gold prices. The US dollar hovered near a seven-month low Tuesday, lending support to dollar-denominated gold.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, are at their highest in seven months at 859 tonnes.
Meanwhile, spot silver fell 0.4% to $29.36 an ounce. Platinum gained 0.4% to $957.08 and palladium shed 0.7% to $925.47