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As economic uncertainty deepens, the hunt for gold continues – with prices of the precious metal rising above $4,300 for the first time this week.
going price for new york On Thursday, the spot price closed at a record $ 4,326 per troy ounce. Futures also traded as high as more than $4,344 per troy ounce on Thursday, before falling below the $4,300 level on Friday morning. Still, gold is up 6.7% over the past week, one of its best weeks ever.
Gold sales could surge as anxious investors look for a “safe haven” for their money. For the US, the latest gains come amid a now-week-long government shutdown and an ongoing trade war with the president abroad donald trump Recently threatened to impose much higher tariffs ChinaThose potential new charges are considered unsustainable before considering going back. Still, his withholding of other import taxes has already put pressure on economies around the world. Meanwhile, the prospect of lower interest rates is also making gold a more attractive investment.
How much did gold prices increase this year? What about silver?
Gold futures are up nearly 60% since the start of 2025 — as of about 11:45 a.m. Friday, it was trading at about $4,268 per troy ounce, the standard for measuring precious metals. That’s up from around $2,670 in early January.
An even bigger percentage jump has been seen in silver so far this year. Silver futures are up nearly 70%, trading above $50 per troy ounce Friday morning.
Why are prices rising?
Much of this is based on uncertainty. Interest in buying metals like gold generally increases when investors become anxious.
Much of this year’s economic turmoil has stemmed from Trump’s trade wars. Since the start of 2025, new tariffs imposed by the President on goods coming into the US from around the world have strained businesses and consumers alike – increasing costs and helping to weaken the job market. As a result, hiring has gone down while inflation has risen again. And more and more consumers are expressing pessimism about the road ahead.
The US government shutdown further increases those concerns. Key economic data has been delayed — and many federal workers are already feeling the effects of the furlough and working without pay for as long as the shutdown lasts, with no immediate end in sight. The Trump administration also used the shutdown to stop mass shootings, although a judge temporarily blocked such actions.
Separately, analysts have pointed to the continued weakness of the US dollar and fresh rate cuts by the Federal Reserve. Last month, the Fed cut its key interest rate by a quarter point – and estimates it will do so twice more this year.
investment Gold has also been influenced by other factors over time. In recent years, there has been strong demand for gold from central banks around the world – especially amid rising geopolitical tensions such as the ongoing wars in Gaza and Ukraine.
And on Wall Street this week, several regional banks saw heavy losses amid scrutiny over loan quality, although the market appeared to be improving on Friday. Meanwhile, investors seem to be steering away from riskier assets like cryptocurrencies – Bitcoin, for example, is down 2.67%.
What about jewelry?
Many jewelery traders and dealers have reported a sharp increase in the number of customers checking the value of the gold they hold – sometimes choosing to melt down or sell family heirlooms to cash in on the rising price of the precious metal.
Also, those in the gold jewelery market may feel “sticker shock” if they are no longer able to purchase certain products – especially if this is affected by both rising material costs and tariffs.
Big retailers like Pandora and Signet have acknowledged these headwinds in recent earnings calls.
Is gold worth investing in?
Proponents of investing in gold call it a safe haven – arguing that the commodity can serve to diversify and balance your investment portfolio as well as reduce potential risks as a hedge against rising inflation. Some people also feel comfortable purchasing an item that is likely to increase in value over time.
Still, experts caution against putting all your eggs in one basket. And not everyone agrees that gold is a good investment. Critics argue that gold is not always an inflation hedge, a claim many make – and that there are more efficient ways to protect against the potential loss of capital, such as derivatives-based investments.
The Commodity Futures Trade Commission has also earlier warned people to be cautious about investing in gold. Precious metals can be highly volatile, and prices rise when demand increases – meaning “when economic anxiety or volatility is high, the people who typically profit from precious metals are sellers,” the Commission said.
Warning of mercury poisoning due to increase in demand for gold
The mania for gold has also resulted in health and environmental consequences – officials have pointed to increased demand for mercury, a toxic metal that is important in illegal gold mining around the world.
Mercury It is widely used to separate gold during artisanal or small-scale mining. But it pollutes water, accumulates in fish, enters food and accumulates in people’s bodies, causing neurological and developmental harm. Even small-scale exposures can carry serious risks – endangering workers who rely on the industry as well as residents of more widely affected areas.
The Associated Press has reported on the effects of mercury poisoning linked to gold mining in countries such as Senegal, Mexico and Peru, among other parts of the world.