Gold futures hit all-time high amid government shutdown

Gold futures rose above $4,000 per ounce for the first time in history as investors continue to seek a safe haven for their money with the U.S. government essentially shut down.

As of 6:10 a.m., gold futures traded at $4,003 in New York. The going price for New York spot gold rose to $3,960.60 per troy ounce — the standard for measuring precious metals.

Gold futures are standardized contracts that agree to trade gold at that time, but with a settlement day in the future. The terms, including the amount and price, are decided when the contract is made. The settlement day is when the actual trade takes place, with the delivery and payment being conducted.

Gold futures surpass all-time high

Gold sales can rise sharply when anxious investors seek secure investments for their money. Before Tuesday, the asset — and other metals, like silver — had seen wider gains over the last year, with gold climbing more than 51% year-to-date (YTD) and silver increasing roughly 64% YTD.

On Monday, Goldman Sachs updated its December 2026 gold price forecast to $4,900 per ounce from $4,300, with possible central bank purchases and increased exchange-traded fund (ETF) inflows, according to Reuters.

“We see the risks to our upgraded gold price forecast as still skewed to the upside on net, because private sector diversification into the relatively small gold market may boost ETF holdings above our rates-implied estimate,” Goldman said.

Gold tends to outperform in times of economic uncertainty and low-interest-rate environments. Investors have seemingly priced in the expectation of a 25-basis-point interest rate cut from the Federal Reserve at the end of this month, with a potential 25 bp cut anticipated in December.

Previous gold futures movement

In August, gold futures rose to an all-time high of $3,534 after reports of the White House’s plans to issue an executive order imposing tariffs on gold.

President Donald Trump was rumored to prepare an executive order “clarifying misinformation” about potential tariffs on gold bars and other commodities. Days later, Trump stated, “Gold will not be Tariffed!” on social media, ending days of speculation.

The U.S. gold futures continuous contract has increased 51.42% YTD. The gold futures increase has outpaced the E-Mini S&P 500 futures continuous contract by more than triple in the same period, with the S&P only up 14.2%, as of this reporting.

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