Gold futures hit a record high above $4,000 per troy ounce amid the U.S. government shutdown. Gold prices have surged about 50% this year, with silver up nearly 60%. Factors driving demand include economic uncertainty from tariffs and lower interest rates, along with geopolitical tensions and a weakening job market.

Investors are turning to gold as a safe haven asset amid market volatility. The ongoing U.S. government shutdown, Trump’s tariffs, and economic turmoil have fueled the price surge. Analysts cite a weaker U.S. dollar and Federal Reserve rate cuts as additional drivers. Gold demand has also increased due to central bank purchases and geopolitical tensions.

Gold’s rally began in 2022, with Western allies freezing Russian assets at the start of the Ukraine war. Jewelry merchants report more customers selling family heirlooms for gold. Retailers like Pandora and Signet acknowledge challenges due to rising material costs and tariffs. Advocates argue gold is a good investment to hedge against inflation.

However, experts urge caution, noting gold’s volatility and potential scams. The Commodity Futures Trade Commission warns against investing in gold due to price fluctuations. The surge in gold demand has led to health and environmental consequences, with rising mercury use in illegal gold mining posing risks of pollution and harm to workers and residents.

Mercury poisoning from gold mining has been reported in countries like Senegal, Mexico, and Peru. The toxic metal pollutes water, accumulates in fish, and causes neurological harm. Small-scale exposure poses serious risks. The surge in gold demand highlights the need for sustainable mining practices to protect both people and the environment.

Read more at Yahoo Finance: Gold futures rise above $4,000 per ounce for the first time