NEW YORK (AP) — As amid the U.S. government’s first in almost seven years, the continues to climb to new heights.
The going price for New York spot gold hit a record $3,858.45 per troy ounce — the standard for measuring precious metals — as of market close Tuesday, ahead of the shutdown beginning overnight. And futures continued to climb on Wednesday, dancing with the $3,900 mark as of midday trading.
Gold sales can rise sharply when anxious investors seek “safe havens” for parking their money. Before Wednesday, the asset — and other metals, like silver — have seen wider gains over the last year, particularly with President ‘s barrage of plunging much of the world into economic uncertainty.
If trends persist, analysts have predicted that prices could continue to soar. Still, gold can be volatile and the future is never promised. Here’s what we know.
How much have gold prices climbed this year? What about silver?
Gold futures more than 45% since the start of 2025, trading at just over $3,895 by around 12:30 p.m. ET on Wednesday.
Other precious metals have also raked in gains — with silver seeing an even bigger percentage jump year to date. Silver futures are up more than 59%, trading at nearly $48 per ounce as of midday Wednesday.
Why are prices going up?
A lot of it boils down to uncertainty. 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 — and weakening the job market. As a result, while inflation continues . And more and more consumers are about the road ahead.
The current U.S. government shutdown could add to those anxieties. A key jobs report from the Labor Department, scheduled for Friday, is likely to be delayed, for example. And the shutdown itself threatens to bring its nationwide. Roughly were expected to be furloughed, with some by Trump’s Republican administration. Many , perhaps permanently, as Trump vows to “do things that are irreversible” to punish Democrats for .
The scope of impact could come down to how long the impasse lasts. Wall Street, meanwhile, has 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 around the world — including amid rising , 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 , 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 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 adds, it’s important to educate yourself on safe trading practices and be cautious of potential scams and counterfeits on the market.
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