Gold futures rise above $4,000 per ounce for the first time

NEW YORK — Gold futures rose above $4,000 per ounce for the first time on Tuesday as many investors seek a "safe haven" for to park their money as the U.S. government shutdown continues. Gold futures in New York briefly jumped above the $4,000 mark just after 9 a.m. ET, 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 — Monday. Gold sales can rise sharply when anxious investors seek secure investments for their money. Before Tuesday, the asset — and other metals, like silver — had seen wider gains over the last year, particularly with President Donald Trump 's barrage of tariffs plunging much of the world into economic uncertainty. How much have gold prices climbed this year? Gold futures are up about 50% since the start of 2025 — trading at around $4,003 per troy ounce as of around 9:30 a.m. ET on Tuesday, before falling back just under the $4,000 mark before 10 a.m. ET. That's up from around $2,670 seen at the beginning of January. Why are prices going up? 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 weakening the job market. As a result, hiring has plunged while inflation continues to inch back up. 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. Trump has also threatened to use the shutdown to dole out mass firings and perhaps permanently shutter offices in attempt to punish Democrats for voting down GOP legislation. The scope of impact could come down to how long the impasse lasts. Wall Street, meanwhile, has largely been unmoved by the shutdown so far — but Treasury yields dropped after discouraging hiring data from ADP Research Wednesday. Investments in gold have also been driven by other factors over time. Analysts have previously pointed to strong gold demand from central banks around the world — including amid rising geopolitical tensions, such as the ongoing wars in Gaza and Ukraine. Is gold worth the investment? Advocates of investing in gold call it a "safe haven" — arguing the commodity can serve to diversify and balance your investment portfolio, as well as mitigate possible risks down the road. Some also take comfort in buying something tangible that has the potential to increase in value over time. Still, experts caution against putting all your eggs in one basket. And not everyone agrees gold is a good investment. Critics say gold isn't always the inflation hedge many say it is — and that there are more efficient ways to protect against potential loss of capital, such as derivative-based investments. The Commodity Futures Trade Commission has also previously warned people to be wary of investing in gold. Precious metals can be highly volatile, the commission said, and prices rise as demand goes up — meaning "when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers." And even gold's current rally has seen some volatility. While still up significantly overall since the start of the year, there's been a handful of short stretches with losses. Gold prices fell for several days following Trump's sweeping "Liberation Day" announcement on April 2, for example. If you do choose to invest in gold, the commission says, it's important to educate yourself on safe trading practices and be cautious of potential scams and counterfeits on the market.