Gold Prices Continue To Reach New Highs

Gold prices reached new record highs as of Wednesday, rising 0.2% to $2,462.85 per ounce after hitting a high of $2,482.29 earlier in the trading session. This significant rise is predominantly driven by expectations of industry experts who believe that the Federal Reserve will cut interest rates in September. This trend is supported by a combination of weak economic data, making gold increasingly attractive as a near-surefire bet of an asset, especially amid all of the recent increasing global tensions. J.P. Morgan analysts also predict prices could exceed $2,500 per ounce by year-end and reach $2,600 per ounce in 2025.

According to Bloomberg, metal prices have surged by almost 20% so far this year, driven by “large purchases from central banks, strong consumer appetite in China and demand for haven assets amid geopolitical tensions.” Additionally, a recent increase in holdings by exchange-traded funds is contributing to the upward trend.

Over the past year, gold bars have also become quite the hot and trendy commodity within the retail landscape, being made available to consumers in more direct ways than just simple jewelry and accessories. This evolving trend has made it into the mainstream thanks to one of America’s largest retailers: Costco.

Costco successfully entered the gold market, generating significant revenue since it introduced gold bars in late 2023. Analysts estimated that monthly sales could reach between $100 million and $200 million, driven by competitive pricing and strong customer trust. The 24-karat, 1-ounce gold bars were priced at around $2,400 as of April and sold out quickly online.

This demand coincided with rising gold prices due to inflation and geopolitical instability, prompting investors to seek safe-haven assets. The retailer offers two 1-ounce options, which were originally priced around $2,000 when they went on sale in December 2023. Limited to two bars per membership, these gold bars have received high praise, with strong demand discussed in Reddit communities. Interest in gold is rising due to economic factors, and despite being nonrefundable, Costco’s gold sales continue to thrive.