The value of gold bullion reached one million dollars, which became a new historical record for this precious metal. According to information from Bloomberg, the peak indicator was recorded on August 16, when the price of gold exceeded $2,500 per troy ounce (about 33 g). The increase in the price of gold is due to expectations of a possible reduction in the base interest rates by the US Federal Reserve System.
We are talking about refined gold that meets the international LGD (London Good Delivery) standard. The weight of such bars is 400 troy ounces (12.5 kg) and cannot be purchased from commercial banks.
Gold is up 20% year-to-date, making it one of the most profitable commodities in 2024. Particularly active price growth began in March, when the price per ounce reached a historical high of $2,160.
The rise in the value of gold to new record highs is due to several key factors. In particular, Bloomberg notes such factors as significant purchases of the metal by central banks, high demand among Chinese consumers, as well as growing interest in gold as a defensive asset against the backdrop of geopolitical instability.
Nevertheless, such a sharp increase did not come as a surprise to everyone. Consulting company Metals Focus in June predicted the possibility of setting a new record this year, and in early July, Citigroup announced a forecast according to which the price of gold could reach $2,700-3,000 per ounce in 2025.
Specialists from Goldman Sachs express even more optimistic expectations – they predict that gold may rise in price to $2,700 by the end of this year. According to experts, investing in gold currently provides the best hedging opportunities among all commodities. Gold bullion can provide a safe buffer against geopolitical upheavals, including wars, trade conflicts and concerns about US sovereign debt. According to analysts, the price of gold may reach $2,700 by 2025.
As for Ukraine, the country has not replenished its gold reserves on the world market for three years – this indicator remains at the level of 27.1 tons. However, in 2024, the National Bank announced an increase in the share of gold in the country’s international reserves, which became possible due to the increase in the value of the metal itself.
