The price of gold reached an all-time high last week – and remained close to that record on Monday.
Spot gold rose 0.3 percent to $2,518.47 an ounce at 1:45 p.m. on Monday, just below a record high of $2,531.60 hit last week, Reuters reported, and U.S. gold futures closed 0.3 percent higher at $2,555.20.
Monday’s rise came “on solid speculation of a September rate cut following dovish signals from US Federal Reserve Chairman Jerome Powell and safe-haven demand due to geopolitical risks in the Middle East,” Reuters said.
One troy ounce, the standard measurement for scrap metal, is equal to about 31 grams, according to the Associated Press.
According to USA Today, the unit of measurement was first used in the Middle Ages and originated in Troyes, France.
“This week’s record high means gold prices have risen by hundreds of dollars per troy ounce over the past year,” the AP said.
Recent market volatility, an upcoming election, geopolitical tensions and recession fears are leading to a “bullish gold soup,” @@MadisonMills22 says about the rising gold price. pic.twitter.com/I5OKvbVFZE
— Yahoo Finance (@YahooFinance) 23 August 2024
That means a 400-ounce gold bar or block would be worth more than $1 million today, according to the AP.
People tend to be more interested in buying gold in uncertain times due to concerns about inflation and the strength of the U.S. dollar, AP reported, as the price of gold also rose in the early days of the pandemic.
Giovanni Staunovo, a commodities analyst at UBS Global Wealth Management, said his team forecasts gold prices to reach $2,600 by the end of this year – and $2,700 by mid-2025.
According to AP, investing in gold is considered a “safe haven” by some because the precious metals help diversify and balance investment portfolios.
However, not everyone believes that gold is a good investment.
“Critics say gold is not always the inflation hedge that many believe it to be – and there are more effective ways to protect against potential capital loss, such as through derivatives-based investments,” AP reported.
Megan Swift is a TribLive reporter covering breaking news in Western Pennsylvania. A native of Murrysville, she joined the Trib full-time in 2023 after serving as editor in chief of The Daily Collegian at Penn State. Before that, she worked for three summers as a Jim Borden Fellowship intern at the Trib. She can be reached at [email protected].
