As international gold prices soar, the price per gold bar (standard gold ingot) has surpassed $1 million (approximately 1.33 billion KRW) for the first time in history. This surge is a result of increased gold demand amid expectations of a U.S. interest rate cut and growing concerns over escalation in the Middle East.
According to Bloomberg and other sources on the 19th (local time), the spot price of gold surpassed $2,500 per ounce for the first time ever on the 16th and is currently in a consolidation phase. Although it has not reached the previous record high of $2,509.65, it still maintains the $2,500 per ounce level. On the New York Mercantile Exchange, the December delivery gold futures price rose 0.1% from the previous session to close at $2,541.30.
This price level means that the price per gold bar has also exceeded $1 million. The standard gold ingots, primarily used by central banks worldwide when holding physical gold, are typically produced in 400-ounce weights based on the London market, the hub of precious metals trading. Bloomberg reported, "Gold bars have reached a value of $1 million for the first time in history," adding, "This historic milestone was achieved starting from last Friday (the 16th), when the spot gold price surpassed $2,500 per ounce."
International gold prices, a representative safe-haven asset, have been rising since the end of last month due to expectations of a September interest rate cut by the U.S. Federal Reserve (Fed) combined with geopolitical risks originating from the Middle East. Generally, gold prices tend to rise as an alternative investment when inflation expectations increase or interest rates decline.
Additionally, hoarding by central banks worldwide has driven gold prices higher. According to Metals Focus, net gold purchases by central banks in the first half of the year amounted to approximately 483.3 tons, equivalent to about 40,000 gold bars. The report analyzed this as "one of the factors supporting this year's explosive gold rally alongside expectations for the Fed's monetary easing policy."
Currently, some market observers predict that if the U.S. September interest rate decision falls short of market expectations, a short-term decline may occur. Wang Tao, a technical analyst at Reuters, forecasted that gold prices could fall to the $2,479?$2,487 range if the resistance level at $2,507 per ounce is not maintained.
On the other hand, there are also predictions that the price will surpass the $2,600 level within a few months. Giovanni Staunovo, an analyst at UBS, stated, "Gold prices are likely to continue their upward trend for several months and reach $2,600 by the end of the year," adding, "Everyone's attention will be focused on Fed Chair Jerome Powell's imminent signals regarding interest rate cuts."
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