Gold futures have soared above $4,000 per troy ounce for the first time, as many investors seek a "safe haven" to park their money as the U.S. government shutdown continues.
Gold futures in New York jumped above the $4,000 mark Tuesday morning, marking 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. 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.
Gold futures are up about 50% since the start of 2025 — trading at around $4,008 per troy ounce as of around 11 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%, 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 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.
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.
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."
If you do choose to invest in gold, the commission said, it's important to educate yourself on safe trading practices and be cautious of potential scams and counterfeits on the market.
Soaring gold prices have also carried health and environmental consequences worldwide — with officials pointing to rising demand for mercury, a toxic metal that is key in illegal gold mining.
Mercury is widely used to separate gold during artisanal or small-scale mining. But it pollutes water, accumulates in fish, makes its way into food and builds up in people's bodies, leading to neurological and developmental harm. Even small-scale exposure can carry serious risks — putting in danger workers who rely on the industry, as well as residents in affected areas more broadly.
The Associated Press has reported about the effects of mercury poisoning tied to gold mining in countries like Senegal, Mexico and Peru, among other parts of the world.