Gold prices are recorded high because worrying investors want safe shelter for money
Gold futures have increased above $ 4,000 for the first time above ounces, as many investors want a safe place to park their money as the US government continues to shutdown.
Commodity jumped on Tuesday morning and records to reach high levels. The New York Spot Gold Price was already closed to $ 3,960.60 per troy ounces – standard for measuring precious metals – on Monday.
Gold sales may increase rapidly when worried investors want safe investment for their money.
Even before the shutdown, property – and other metals, such as silver – had seen wide benefits compared to the previous year, as President Donald Trump’s tariff’s barrage causes uncertainty around the approach to the global economy.
Recently, the possibility of low interest rates has also made gold a more attractive investment than interest-bearing investment.
Why have prices gone this year
Gold futures are around 50 percent since the onset of 2025 – trading at $ 4,013 per troy ounces on Tuesday at around 11:30 pm. It has been viewed by about $ 2,670 in early January.
Other precious metals have also raised in profit, watching an even bigger percentage of jump with silver. Silver futures are around 60 percent, which trading close to $ 48 per troy ounce on Tuesday morning.
Most of the recent economic turmoil have spread from Trump’s trade wars. Since the onset of 2025, the President has been imposed on the goods coming from the world on the world after the new tariff is erected, which are equally stressful to businesses and consumers – to help more pushing costs and weakening the job market.
As a result, the hiring has taken a dip, while inflation is back – gold is considered a defense against inflation. More and more consumers are expressing pessimism about the road ahead.
The current US government’s shutdown has added those concerns. Major economic data is delayed – and the scores of federal employees are already feeling the effects of the furlof and working without payment for the shutdown period, which has no immediate end.
Trump has threatened to use a shutdown to mass firing and perhaps permanent shutter offices in an attempt to punish the Democrats to reduce the Republican Act.
Gold has long been seen as a stable investment, and in the time of global uncertainty, it is becoming so popular that large boxes such as costco have jumped on the bandwagan.
‘A safe haven asset’
UBS Global Wealth Management Commodity Analyst Giyavani Stanovo has continued the US dollar’s frequent weakness and rate rate cut from Federal Reserve. Last month, Fed cut off its major interest rate from a quarterly-point-and estimated that it would be twice more this year.
Investment in gold is also operated by other factors over time. Analysts have previously pointed to the demand for strong gold from central banks around the world – which has enhanced geopolitical tensions such as the ongoing wars in Gaza and Ukraine.
“The gold rally began in 2022,” Stanovo said via email on Tuesday. He said that the “trigger point” was when the US and other Western ally went to Ukraine to freeze about $ 300 billion foreign holdings at the beginning of the war.
Stanovo said, “Sona is considered as a safe shelter property by many market participants. But investors need to know that it has a 10–15 percent instability,” given that there are small amounts of physical gold, such as gold coins or one-gram bar, have large limits between buying and selling prices.
