Wyatte Grantham-Philips, AP Business Writer
NEW YORK (AP) – Gold prices have skyrocketed to levels they have never seen before amid widespread economic turmoil.
Gold Futures surpassed $3,000 per troy ounce for the first time this week. The price of buying gold at the New York spot market is even more behind.
Interest in buying money in times of uncertainty can rise sharply as uncertain investors seek safe shelters for their money. Gold prices are now surged high as President Donald Trump’s tariff policies have launched an international trade war that has threatened to shake up financial markets and rekindle inflation as well as families and businesses.
As the trend continues, analysts say gold prices could continue to rise in the coming months. However, precious metals are also unstable assets, so the future is never promised.
Here’s what you need to know.
What is the price of gold today?
Continued prices for Spot Gold in New York concluded Thursday at $2,988 per troy ounce. This is the standard for measuring 31 grams of precious metals per fact set. This is over $825 more spot price than Gold from a year ago.
Gold futures surpassed the $3,000 mark on Thursday. However, as of Friday afternoon, it was just over $2,994.
Spot Gold prices have risen by almost 14% since their launch in 2025 for each fact set. In contrast, the stock market has fallen. The Benchmark S&P 500 has fallen over 5% again this year, and even fades blue chip stock. For example, Apple had its worst week in five years.
Why does gold prices go up?
Much of this is summarised in uncertainty. Usually, investors are interested in buying gold when they feel uneasy – and there has been a lot of economic disruption in recent months.
Today, the heaviest uncertainty lies in Trump’s escalating trade war. The president’s new tax announcements and retaliatory tariffs addressed from some of the country’s closest traditional allies have created a sense of whiplash for both businesses and consumers.
Confidence began to slip at the beginning of the year for both US households and businesses due to fears of inflation and tariffs. These concerns appear to be getting worse, according to a preliminary survey released Friday by the University of Michigan. Its consumer sentiment measures have sunk for the third consecutive month, mainly due to concerns about the future.
“We believe that gold pricing patterns are still related to tariffs,” an analyst at RBC Capital Markets wrote in a research note on Thursday. He added that while inflation has cooled recently, tariffs are threatening to raise prices. “General uncertainty and chaos are also very supportive factors for gold.”
Joe Cavatoni, chief market strategist at the World Gold Council, added Friday that he and others are anticipating the latest milestone in gold for months. “The global challenges and risks associated with today’s money management have raised concerns and are increasingly transforming into assets as “safe shelters” in an email.
Last year, analysts have also pointed to strong demand for money from central banks around the world amidst geopolitical tensions, including wars in Gaza and Ukraine.
Is gold worth an investment?
Advocates of investing in gold call it a “safe shelter.” It claims that products help diversify and balance your investment portfolio, mitigate potential risks. Others also find it more comfortable to buy specifics that can increase value over time.
Still, experts should note that all the eggs are put in one basket. And not everyone agrees that gold is a good investment. Critics say gold is not the inflation hedge that many have always said — and say there are more efficient ways to protect against potential losses in capital, such as derivative-based investments.
The Commodity Futures Trade Commission has previously warned people to be vigilant about investing in gold. According to the committee, precious metals are extremely unstable and prices can rise as demand rises. In other words, “When there is high economic anxiety or instability, the people who usually benefit from precious metals are the sellers.”
If you choose to invest in gold, the committee adds, it is important to educate yourself on safe trading practices and beware of potential fraud and counterfeiting in the market.
Original issue: March 14th, 2025, 1:23pm EDT
