For the first time, the value of a gold bar has surpassed one million dollars, driven by surging prices for the precious metal.

Spot gold prices climbed above $2,500 per troy ounce on Friday, marking a new record high.

Given that the average gold bar weighs 400 troy ounces, this equates to a value of one million dollars per bar.

Bloomberg News was the first to report on this milestone.

Spot gold prices have risen over 20% this year. The increase in gold prices often signals that investors anticipate the Federal Reserve will soon lower its benchmark interest rate. Additionally, central banks, particularly in China, are buying more gold to reduce their dependency on the US dollar.

Central banks and investors consider gold a reliable long-term store of value during economic uncertainty. This is because gold prices typically rise when interest rates fall, making bullion more attractive than bonds.

Gold is also viewed as a hedge against inflation, as investors believe it will maintain its value even when prices increase.

It's worth noting that not all gold bars weigh exactly 400 ounces. The United States Gold Bureau also pointed out that gold bars are typically traded internationally by central banks and bullion dealers, rather than by individuals.