Summary
Gold prices have reached record highs as the U.S. government experiences its first shutdown in nearly seven years. The economic uncertainty caused by the shutdown and trade issues has led to increased demand for gold as a "safe haven" investment. Other precious metals like silver have also seen significant price increases.
Key Facts
- The price of gold in New York hit a record $3,858.45 per troy ounce on Tuesday.
- Investors often buy gold during times of economic uncertainty as it is considered a "safe haven" asset.
- Gold futures have increased by over 45% since the start of 2025.
- Silver futures have risen by more than 59%, reaching nearly $48 per ounce.
- The U.S. government shutdown could potentially affect 750,000 federal workers.
- Tariffs imposed by President Trump have contributed to economic uncertainty and impacted businesses.
- Wall Street has remained mostly unaffected by the shutdown so far, but Treasury yields dropped following a negative hiring report.
- Analysts note that demand from central banks and geopolitical tensions also influence gold prices.
