Kathrine Frich
Since January 2025, the value of gold has risen by nearly 50 percent.
Since January 2025, the value of gold has risen by nearly 50 percent.
Gold hits historic $4,000
Gold has reached its highest price in history, crossing the $4,000 per ounce mark for the first time.
The surge comes as investors, spooked by economic uncertainty and a U.S. government shutdown, turn to gold as a safe haven for their wealth.
Record-breaking surge on New York markets
At the New York Stock Exchange, gold briefly hit $4,003 per troy ounce before closing slightly lower.
The record reflects growing investor anxiety amid stalled government operations and fears of a looming recession.
A year of dramatic growth
Since January 2025, the value of gold has risen by nearly 50 percent.
Prices at the start of the year hovered around $2,670 per ounce, but a combination of trade tensions, inflation, and weakening confidence in financial markets has driven the metal to record highs.
Trump’s tariffs trigger global uncertainty
Much of the surge has been linked to President Donald Trump’s aggressive trade policies.
New tariffs on imports from Asia and Europe have disrupted markets worldwide, leading businesses to cut jobs and driving investors toward assets seen as more stable.
Shutdown adds fuel to the panic
The ongoing U.S. government shutdown has deepened investor fears.
Thousands of public employees are furloughed, key economic data has been delayed, and federal offices remain closed indefinitely.
Analysts say the political standoff is making investors desperate for stability.
Gold’s ancient role as a ‘safe haven’
For centuries, gold has been seen as a store of value during crises.
Economists say the current rush mirrors historic patterns — from wars to recessions — where people turn to tangible assets they believe will hold value when currencies falter.
Central banks drive up demand
Governments themselves are also buying more gold.
Central banks in China, Turkey, and Russia have been stockpiling reserves in recent years, seeing it as insurance against geopolitical instability and the fluctuating U.S. dollar.
This institutional demand has helped push prices higher.
Warnings from financial regulators
Not everyone is celebrating.
The U.S. Commodity Futures Trading Commission has cautioned that gold can be volatile and easily manipulated.
Officials warn that panic buying often benefits sellers the most, as prices tend to fall once stability returns.
Market volatility and political drama
Despite its meteoric rise, gold has seen brief dips throughout the year.
One notable drop followed Trump’s “Liberation Day” speech in April, which sparked short-term optimism in stock markets.
Analysts warn that gold’s rally could reverse quickly if the U.S. resolves its economic issues.
Investing with caution
Financial advisors recommend diversification rather than full commitment to gold.
While the metal can balance a portfolio, experts stress the importance of due diligence to avoid scams and counterfeit bars — especially as online trading in precious metals rises.
This article is made and published by Kathrine Frich, which may have used AI in the preparation
