The price of gold is at a record high. Here's why
The price of gold hit an all time high this week
NEW YORK — A gold rush is here. The precious metal hit an all time high this week.
The spot price for gold closed Tuesday above $2,514, according to data from FactSet. That's the highest closing price recorded for the commodity to date. Here's what you need to know.
The spot price of gold closed Tuesday at just over $2,514 per Troy ounce — the standard for measuring precious metals, which is equivalent to 31 grams. That would make a gold bar or brick weighing 400 Troy ounces worth more than $1 million today.
This week's record high means that the price of gold has climbed hundreds of dollars per Troy ounce over the last year. Tuesday's price is up nearly $620 from this time in 2023.
There are a few factors behind the recent gains.
Interest in buying gold often comes at times of uncertainty — with potential concerns around inflation and the strength of the U.S. dollar, for example, causing some to look for alternative places to park their money. Gold also saw a surge in the early days of the COVID-19 pandemic.
Joe Cavatoni, senior market strategist at the World Gold Council, noted current demand from central banks is well above the five-year average — reflecting heightened concern with inflation and economic stability. He also pointed to ongoing geopolitical tensions, among other factors, that have caused some to buy gold.
The wars in Ukraine and Gaza have notably fueled uncertainty around the world. And countries, including the United States, are also in the midst of a tumultuous election year — which could prove crucial to future economic policy.
All eyes are also on coming economic news that could impact financial markets. In the U.S., the Fed is poised to cut its
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