Gold Prices Hit $4,000 Amid U.S. Government Shutdown

On Tuesday morning, New York gold futures jumped above $4,000. That’s a record high. Just the day before, spot gold closed at $3,960.60 per troy ounce — the standard measure for precious metals.

Gold often rises when investors feel nervous. People want a safe place for their money. Metals like gold and silver have been climbing all year, especially after President Donald Trump’s tariffs shook the global economy.

Gold Prices Hit $4,000 Record in New York

Since January 2025, gold futures are up about 50%. On Tuesday morning, they traded near $4,013 per troy ounce. Back in January, they were around $2,670. Silver has risen even more — about 60% — trading near $48 per troy ounce.

Why Are Prices Rising?
The main reason is uncertainty. When the economy looks shaky, investors turn to gold.

Trump’s trade wars play a big role. Tariffs on imports from many countries have raised costs, hurt businesses, and slowed hiring. Inflation is creeping back up. Consumers are worried.

The government shutdown adds more stress. Federal employees face furloughs or work without pay. There’s no end in sight. Trump has also threatened mass firings and office closures to punish Democrats.

How badly the economy is affected depends on how long the shutdown lasts.

Gold demand has also risen for other reasons. Central banks worldwide keep buying. Geopolitical tensions, like wars in Gaza and Ukraine, also push up prices.

“The gold rally started in 2022,” said Giovanni Staunovo, a commodity analyst at UBS Global Wealth Management. He said it kicked off when Western allies froze about $300 billion of Russian foreign holdings after the war in Ukraine began.

Is Gold a Smart Investment?

Many call gold a “safe haven.” They say it can diversify your portfolio and reduce risk. Some like holding something tangible that may gain value over time.

But experts warn: don’t put all your money in gold. Critics say it isn’t always a good hedge against inflation. Other investments might protect your money better.

The Commodity Futures Trade Commission cautions people about gold. Precious metals can swing wildly. Prices rise when demand is high. Often, the sellers profit most when fear is high.

If you invest, learn safe trading practices. Watch out for scams and fake gold.

“Gold is seen as a safe haven, but it can swing 10-15%,” Staunovo added. Smaller amounts, like coins or 1-gram bars, can vary even more in price.

Global Gold Demand and Market Trends

Gold demand has also risen for other factors over time. Analysts point to continued buying by central banks. Geopolitical tensions and economic uncertainty keep interest high.

Rising gold demand also has a dark side. Mercury, used in illegal or small-scale gold mining, is toxic. It pollutes water, enters fish, and builds up in people’s bodies.

It can cause serious neurological and developmental harm. Even small exposure is dangerous for workers and nearby communities.

The Associated Press has reported mercury poisoning tied to gold mining in Senegal, Mexico, Peru, and other countries.

Gold may be shining bright in the markets. But it comes with risks — to both investors and the environment.

Author Profile

Saleem Mubarak: Saleem Mubarak is a journalist and real estate writer who covers Houston’s evolving property market with a sharp eye for local trends and investor dynamics. He focuses on how shifting prices, interest rates, and migration patterns shape the city’s real estate future.

He has interviewed leading real estate professionals to bring readers first-hand insights into Houston’s changing market—from rising investor activity to the influence of social media on property buying.