Price Soars

On Tuesday, gold futures surpassed $4,000 per troy ounce for the first time, as investors sought safe-haven assets.

Context

Gold traditionally serves as a refuge for investors during periods of economic and political uncertainty. The precious metal often gains value when other assets, including stocks and currencies, face volatility or when investors lose confidence in traditional financial systems. Central banks worldwide have increased their gold purchases in recent years, particularly following geopolitical tensions and efforts to diversify away from dollar-denominated assets. Gold and other metals are measured in troy ounces, slightly heavier than standard ounces.

Shutdown Drives Demand

On Tuesday, gold futures jumped above $4,000, marking a historic milestone after spot gold closed at $3,960.60 per troy ounce on Monday.