NEW YORK (AP) — As uncertainty grows with the U.S. government facing its first shutdown in nearly seven years, a surge in gold prices is reaching unprecedented levels.
The price for New York spot gold set an all-time high of $3,858.45 per troy ounce — the benchmark for precious metals — as markets closed on Tuesday, just before the shutdown began. Futures rose further on Wednesday, hovering around the $3,900 threshold throughout the day.
Gold purchases typically increase when investors look for “safe havens” during uncertain times. Leading up to Wednesday, gold and other metals have experienced notable gains over the past year, particularly due to President Donald Trump‘s implementation of tariffs driving global economic uncertainty.
If current trends persist, analysts expect prices to keep climbing. However, gold markets can be unpredictable and the future remains uncertain. Here’s what we know.
How much have gold prices increased this year? What about silver?
Gold futures have surged over 45% since the beginning of 2025, trading just below $3,895 by around 4 p.m. ET on Wednesday.
Other precious metals have also benefited, with silver experiencing an even larger percentage increase year-to-date. Silver futures are up nearly 59%, trading above $47 per troy ounce as of Wednesday afternoon.
What is driving the price increase?
Much of the rise stems from growing uncertainty. Interest in acquiring precious metals like gold usually spikes when investors are anxious.
The current economic turmoil is largely attributed to Donald Trump‘s trade conflicts. Beginning in 2025, new high tariffs imposed by the president on imports have added pressure on both businesses and consumers, raising costs and weakening the job market. Consequently, employment rates have dropped while inflation continues to marginally increase. Furthermore, more and more consumers are showing doubt about the future.
The ongoing U.S. government shutdown could add to this uncertainty. A significant jobs report from the Labor Department, due on Friday, is likely to be delayed. Additionally, the shutdown itself poses risks of its own economic consequences nationwide. Approximately 750,000 federal employees are expected to be furloughed, with some potentially terminated by Trump’s administration. Numerous offices will also be closed, possibly permanently, as Trump pledges to implement “irreversible actions” to penalize Democrats for not supporting GOP initiatives.
The extent of the impact will likely depend on the duration of the stalemate. Concurrently, Wall Street has mostly shown stability in response to the shutdown thus far — however, Treasury yields experienced a decline following disappointing hiring statistics from ADP Research on Wednesday.
