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(NewsNation) — A single bar of gold is now worth $1 million for the first time ever.

The milestone was hit Friday after the precious metal’s spot price surpassed $2,500 per troy ounce. Gold bars typically weigh 400 troy ounces, so a standard gold bar is valued at a million dollars.

Gold’s record run continued this week, with spot gold reaching an all-time high of $2,531 per ounce on Tuesday. The value of the precious metal — which has long been seen as a hedge against economic uncertainty — is now up more than 20% for the year.

The rise comes as investors prepare for the Federal Reserve to cut interest rates. When that happens, investments like bonds become less appealing, which can push up gold prices.

“The primary drivers of the gold price move are financial investment demand, particularly with ETF buying improving and overall improved sentiment as the expectations of Fed easing cycle to begin in September,” said Aakash Doshi, head of commodities, North America at Citi Research, per Reuters.

Doshi said gold could reach $2,600 per ounce by the end of the year and $3,000 per ounce by mid-2025.

Central banks have also been on a gold-buying spree. In 2022 and 2023, central banks bought over 1,000 tonnes of gold — more than double their net purchases in 2021, according to the World Gold Council. China was particularly active, accounting for over 20% of central bank net purchases as the country attempted to reduce its reliance on the US dollar.

Even American retail giants like Costco have seen a gold rush. The big-box store started selling gold bars last year, which could be generating as much as $200 million in revenue per month, according to a recent estimate.

Many investors consider gold a reliable hedge against inflation, rising in value even as the purchasing power of the dollar declines.