New York (AP)-Gold’s term contracts have climbed over $ 4,000 per Once Troy for the first time on Tuesday, while many investors are looking for a safe place to park their money during the crisis. US government closure.
The price in force of gold in cash in New York had previously closed on Monday at 3,960.60 dollars per Troy – the standard to measure precious metals.
Gold sales can increase sharply when anxious investors are looking for safe investments for their money. Even before closing, assets – and other metals, such as money – had recorded significant gains in last year, as the president said. Donald Trump The dam of prices arouse uncertainty about the prospects of the global economy. More recently, the prospect of a drop in interest rates has also made gold a more attractive investment than remunerated investments.
To what extent has the price of gold increased this year?
Gold -term contracts have increased by around 50 % since the start of 2025 – running around $ 4,003 per ounce Troy just after 4 p.m. on Tuesday. This represents an increase compared to around $ 2,670 in early January.
Money has experienced an even greater percentage increase since the start of the year. The term contracts on money are up almost 60 %, exchanging at less than $ 48 per ounce Troy on Tuesday afternoon.
Why do prices increase?
This is largely limited to uncertainty. Interest in the purchase of metals like gold It generally reaches peaks when investors become anxious.
A large part of the recent economic crisis arises from trade wars led by Trump. Since the beginning of 2025, the new high customs duties imposed by the President on goods imported into the United States from around the world have tested businesses and consumers. rifle and help weaken the labor market. Therefore, The hires fell While inflation has gradually. And more and more consumers are express one’s pessimism On the way to go.
The US government was closed added to these concerns. Key economic data was delayed – and scores Federal employees Already feel the effects of technical unemployment and work without salary as long as the closure lasts, which has no immediate end in sight. Trump also threatened to use Shutdown make mass shots and perhaps permanently close offices to try to punish the Democrats to Vote against GOP legislation.
Giovanni Staunovo, analyst of raw materials at UBS Global Wealth Management, also underlines the persistent weakness of the market. The US dollar and new rate reductions on the share of the federal reserve. Last month, the Fed give up A quarter of a point – and provided that he would do it twice this year.
Investments in gold have also been stimulated by other factors over time. Analysts have already underlined a strong demand for gold central banks all over the world – including in a context of increase Geopolitical tensionsLike the ongoing wars in Gaza and Ukraine.
“The gold rally began in 2022,” said Staunovo by email on Tuesday. He noted that the “trigger point” took place when the United States and other Western allies decided to freeze around $ 300 billion in Russian assets abroad. At the start of the war in Ukraine.
What about jewelry?
Many merchants and jewelry resellers have more and more Increased increases in the number of customers seek to verify the value of the gold they have – sometimes choosing to melt or sell family objects to take advantage of the increase in the price of precious metal.
At the same time, gold jewelry market players could feel a “shock” if they can no longer afford certain products – especially if it is impacted both by the increase in the costs of materials and customs duties.
Larger retailers like Pandora and Signet, whose brands include Zales and Kay Jewelers, recognized these winds in recent calls for results.
“If I am a so -called man, we will witness a general price increase for this category,” said Pandora CEO Alexander Lacik at a conference on the results in August, highlighting the increase in gold and money costs, as well as customs tariffs, throughout the sector.
Does gold are worth the investment?
Supporters of investment in gold describe it as “refuge value” – arguing that this raw material can be used to diversify and balance your investment portfolio, as well as to attenuate the possible long -term risks as a coverage against the increase in inflation. Some are also reassured to buy something tangible whose value can potentially increase over time.
However, experts warn against putting all your eggs against the same basket. And not everyone agrees to say that gold is a good investment. Critics claim that gold is not always the coverage against inflation that many claim – and that there are more effective means of protecting itself from a potential loss of capital, such as investments based on derivative products.
“Gold is perceived by many market players as a refuge value. But investors must be aware that it has a volatility of 10 to 15%,” noted Staunovo. He added that small amounts of physical gold, such as gold parts or bars of one gram, have wider differences between purchase and sale prices.
The Futures Trade Commission commodity has also already warned people to be wary of investments in gold. Precious metals can be very volatilesaid the Commission, and prices increase as demand increases – which means that “when anxiety or economic instability is high, those who generally benefit from precious metals are sellers”.
The Commission has added that it is also important to be wary of scams and potential counterfeits on the market.
Gold demand intensifies mercury poisoning warnings
The frenzy for gold has also had consequences on health and the environment: those responsible underlined the growing demand for mercury, a toxic metal that plays a key role in gold production. illegal gold extraction global.
Mercury is widely used to separate gold during artisanal mining or small scale. But it pollutes water, accumulates in fishis found in food and accumulates in people’s body, leading to Neurological and developmental damage. Even small -scale exposure can have serious risks, endangering workers who depend on industry, as well as residents of the areas affected more generally.
The Associated Press reported the effects of mercury poisoning linked to the extraction of gold in countries like Senegal,, Mexico And Peruamong other parts of the world.
