Gold futures prices topped $4,000 per ounce for the first time on Tuesday as investors continue to seek safe havens for their money, with the US government essentially shut down and widespread uncertainty around the economy.
As of 9.10am ET, gold futures traded at $4,003 in New York. The going price for New York spot gold rose to $3,960.60 per troy ounce – the standard for measuring precious metals.
Sales of gold can rise sharply when anxious investors seek secure investments amid times of turbulence or uncertainty.
The asset – and other metals, like silver – had seen wider gains over the last year, particularly with Donald Trump’s barrage of tariffs disrupting much of the world economy.
Peter Grant, vice-president and senior metals strategist at Zaner Metals, described “ongoing safe-haven flows stemming in part from the government shutdown and no real indication that it is likely to be resolved in the immediate term here”.
Non-yielding gold, which tends to do well during times of uncertainty and low interest-rate environments, has climbed 52% so far this year. The metal’s rally has been driven by a cocktail of factors, including expectations of interest rate cuts, ongoing political and economic uncertainty, solid central bank buying, inflows into gold-based funds and a weak dollar.
The US government shutdown entered its seventh day on Tuesday. The shutdown has postponed the release of key economic indicators, forcing investors to rely on secondary, non-governmental data to gauge the timing and extent of Fed rate cuts.
Meanwhile, political turmoil in France and Japan gripped currency and bond markets for a second day running.
Investors are also now pricing in a 25-basis-point cut at the Federal Reserve meeting later this month, with an additional cut anticipated in December.
Reuters and Associated Press contributed reporting