Gold prices have cracked $4K for the 1st time. Why it may not be good news
Global News
Gold futures have surpassed $4000 US per ounce for the first time, with a recent spike occurring as the US government remains shutdown.
Gold futures have soared above US$4,000 per troy ounce for the first time, as many investors seek a safe place to park their money as the U.S. government shutdown continues.
Gold futures in New York jumped above the $4,000 mark Tuesday morning, reaching a record high. The going price for New York spot gold had previously closed at $3,960.60 per troy ounce — the standard for measuring precious metals — on Monday.
Gold sales can rise sharply when anxious investors seek secure investments for their money. Even before the shutdown, the asset — and other metals, like silver — had seen wide gains over the last year, as President Donald Trump ’s barrage of tariffs cause uncertainty around the outlook for the global economy. More recently, the prospect of lower interest rates has also made gold a more attractive investment than interest-bearing investments.
Gold futures are up about 50 per cent since the start of 2025 — trading at around $4,013 per troy ounce as of around 11:30 a.m. ET on Tuesday. That’s up from around $2,670 seen at the beginning of January.
Other precious metals have also raked in gains, with silver seeing an even bigger percentage jump year to date. Silver futures are up about 60 per cent, trading at close to $48 per troy ounce Tuesday morning.
A lot of it boils down to uncertainty. Interest in buying metals like gold typically spikes when investors become anxious.
Much of the recent economic turmoil has spanned from Trump’s trade wars. Since the start of 2025, steep new tariffs the president has imposed on goods coming into the U.S. from around the world have strained businesses and consumers alike — pushing costs higher and helping to weaken the job market. As a result, hiring has plunged while inflation has inched back up — gold is considered a hedge against inflation. And more and more consumers are expressing pessimism about the road ahead.
The current U.S. government shutdown has added to those anxieties. Key economic data has been delayed — and scores of federal employees are already feeling the effects of furloughs and working without pay as long as the shutdown lasts, which has no immediate end in sight.
