Modern gold rush: Gold price hits all time high
The price of gold hit an all time high last week — and it has continued to stay close to that record Monday.
Spot gold rose 0.3% to $2,518.47 per Troy ounce at 1:45 p.m. Monday, which is just shy of the record high of $2,531.60 hit last week, Reuters reported, and U.S. gold futures settled 0.3% higher at $2,555.20.
Monday’s rise happened “amid solid bets of a September interest-rate cut following dovish signals from Federal Reserve Chair Jerome Powell and safe-haven demand due to geopolitical risks in the Middle East,” Reuters said.
One Troy ounce, which is the standard for measuring previous metals, is equivalent to about 31 grams, according to the Associated Press.
The unit of measurement was first used in the Middle Ages, USA Today said, as it originated in Troyes, France.
“This week’s record high means that the price of gold has climbed hundreds of dollars per Troy ounce over the last year,” the AP said.
Recent market volatility, an upcoming election, geopolitical tensions, and recessionary fears create a "bullish gold soup," @@MadisonMills22 says on rising gold prices. pic.twitter.com/I5OKvbVFZE
— Yahoo Finance (@YahooFinance) August 23, 2024
That means a gold bar or brick weighing 400 Troy ounces would be worth more than $1 million today, according to the AP.
People usually become more interested in buying gold in times of uncertainty, with concerns surrounding inflation and the strength of the U.S. dollar, the AP reported, as gold also increased in the early days of the pandemic.
Giovanni Staunovo, a commodity analyst at UBS Global Wealth Management, said his team forecasts the price of gold will reach $2,600 by this year’s end — and $2,700 by mid-2025.
Investing in gold is seen as a “safe haven” to some, according to the AP, as the precious medal can diversify and balance investment portfolios.
But not everyone believes gold is a good investment.
“Critics say gold isn’t always the inflation hedge many say it is — and that there are more efficient ways to protect against potential loss of capital, such as through derivative-based investments,” the AP reported.
Megan Swift is a TribLive reporter covering trending news in Western Pennsylvania. A Murrysville native, she joined the Trib full time in 2023 after serving as editor-in-chief of The Daily Collegian at Penn State. She previously worked as a Jim Borden Scholarship intern at the Trib for three summers. She can be reached at mswift@triblive.com.
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