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Gold rises to new heights as anxiety grips markets. Here's what you need to know

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Gold rises to new heights as anxiety grips markets. Here's what you need to know
News

News

Gold rises to new heights as anxiety grips markets. Here's what you need to know

2025-03-15 03:38 Last Updated At:11:04

NEW YORK (AP) — Amid widespread economic turmoil, the price of gold has soared to levels never seen before.

Gold futures surpassed the $3,000 per troy ounce for the first time this week. The price to buy gold on the spot market in New York is following closely behind.

Interest in buying gold can rise sharply in times of uncertainty, as anxious investors seek safe havens for their money. Gold prices are spiking higher now as U.S. President Donald Trump's tariff policies have kicked off an international trade war that has roiled financial markets and threatened to reignite inflation for families and businesses alike.

If trends continue, analysts say gold's price could continue to climb in the months ahead. But precious metals are also volatile assets — and so the future is never promised.

Here's what to know.

The going price for New York spot gold closed Thursday at record $2,988 per troy ounce — the standard for measuring precious metals, which is equivalent to 31 grams — per FactSet. That's over $825 higher than gold's spot price one year ago.

Gold futures surpassed the $3,000 mark Thursday. But as of Friday afternoon, fell to just over $2,994.

The price of spot gold is up nearly 14% since the start of 2025, per FactSet. By contrast, the stock market has tumbled. The benchmark S&P 500 has tumbled more than 5% this year with even blue chip stocks fading. Apple, for instance, just had its worst week in five years.

A lot of it boils down to uncertainty. Interest in buying gold typically spikes when investors become anxious — and there's been a lot of economic turmoil in recent months.

Today, the heaviest uncertainty lies with Trump's escalating trade war. The president's on-again, off-again new levy announcements and retaliatory tariffs from some of the nation's closest traditional allies have created a sense of whiplash for both businesses and consumers — who economists say will foot the bill through higher prices.

Confidence began to slide at the start of the year for both U.S. households and businesses due to fears of inflation and tariffs. Those worries seem to only be worsening, according to a preliminary survey released Friday by the University of Michigan. Its measure of consumer sentiment sank for a third straight month due mostly to concerns about the future.

“We still view gold’s price patterns as tied to tariffs,” analysts at RBC Capital Markets wrote in a Thursday research note — adding that, while inflation has recently cooled some, tariffs threaten to send prices higher. “General uncertainty and chaos are also very supportive factors of gold.”

Joe Cavatoni, chief market strategist at the World Gold Council, added Friday that he and others have been anticipating gold's latest milestone for months — noting in an email that the “global challenges and risks that come with managing money today" have heightened concern and caused more and more to turn to the asset as a “safe haven.”

Over the last year, analysts have also pointed to strong gold demand from central banks around the world amid geopolitical tension, including wars in Gaza and Ukraine.

Advocates of investing in gold call it a “safe haven” — arguing the commodity can serve to diversify and balance your investment portfolio, as well as mitigate possible risks down the road. Some also take comfort in buying something tangible that has the potential to increase in value over time.

Still, experts caution against putting all your eggs in one basket. And not everyone agrees gold is a good investment. Critics say gold isn’t always the inflation hedge many say it is — and that there are more efficient ways to protect against potential loss of capital, such as derivative-based investments.

The Commodity Futures Trade Commission has also previously warned people to be wary of investing in gold. Precious metals can be highly volatile, the commission said, and prices rise as demand goes up — meaning “when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers.”

If you do choose to invest in gold, the commission adds, it’s important to educate yourself on safe trading practices and be cautious of potential scams and counterfeits on the market.

FILE - Gold bars are shown stacked in a vault at the United States Mint on July 22, 2014 in West Point, N.Y. (AP Photo/Mike Groll, File)

FILE - Gold bars are shown stacked in a vault at the United States Mint on July 22, 2014 in West Point, N.Y. (AP Photo/Mike Groll, File)

HOUSTON (AP) — Tari Eason scored a career-high 30 points to lead the Houston Rockets to an easy 133-96 win over the Dallas Mavericks Friday night.

Jalen Green added 23 points with nine rebounds, despite sitting the entire fourth quarter to help the Rockets to their fifth straight win, tying their longest such streak of the season.

Houston led by double digits most of the night and was up by 16 in the third quarter before scoring the next seven points, with a 3 from Eason, to make it 80-57 midway through the quarter.

The Rockets were up by 21 later in the third before using a 10-0 run to push the lead to 96-65 near the end of the period, and most of their starters didn't play in the fourth.

Brandon Williams scored 25 points off the bench for the Mavericks as they lost for the seventh time in eight games. Klay Thompson was 2 of 16 for five points with nine rebounds.

Mavericks: Dallas continues to struggle with most of its top players out with injuries and lost another one Friday with coach Jason Kidd saying that Dante Exum sustained a broken left hand that will likely end his season.

Rockets: Houston has taken advantage of a schedule with six straight home games, going 4-0 so far on the homestand as it tries to climb the Western Conference standings.

Houston was in control of the game from the start but put it out of reach with its 37-point third quarter.

The Rockets had 29 second-chance points to just two by Dallas on a night Houston had a 17-6 advantage in offensive rebounds.

Houston hosts Chicago on Saturday night and Dallas hosts Philadelphia on Sunday.

AP NBA: https://apnews.com/hub/nba

Houston Rockets guard Jalen Green (4) shoots against Dallas Mavericks forward Kessler Edwards (20) during the first half of an NBA basketball game in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Houston Rockets guard Jalen Green (4) shoots against Dallas Mavericks forward Kessler Edwards (20) during the first half of an NBA basketball game in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Dallas Mavericks guard Spencer Dinwiddie (26) controls the ball against Houston Rockets forward Jabari Smith Jr. (10) during the first half of an NBA basketball game in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Dallas Mavericks guard Spencer Dinwiddie (26) controls the ball against Houston Rockets forward Jabari Smith Jr. (10) during the first half of an NBA basketball game in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Dallas Mavericks forward Kessler Edwards (20) dunks during the first half of an NBA basketball game against the Houston Rockets in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Dallas Mavericks forward Kessler Edwards (20) dunks during the first half of an NBA basketball game against the Houston Rockets in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Dallas Mavericks guard Klay Thompson (31) shoots against Houston Rockets forward Jabari Smith Jr. (10) during the first half of an NBA basketball game in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Dallas Mavericks guard Klay Thompson (31) shoots against Houston Rockets forward Jabari Smith Jr. (10) during the first half of an NBA basketball game in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Houston Rockets forward Dillon Brooks (9) defends against Dallas Mavericks guard Klay Thompson (31) during the first half of an NBA basketball game in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Houston Rockets forward Dillon Brooks (9) defends against Dallas Mavericks guard Klay Thompson (31) during the first half of an NBA basketball game in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Houston Rockets forward Tari Eason (17) dunks during the first half of an NBA basketball game against the Dallas Mavericks in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

Houston Rockets forward Tari Eason (17) dunks during the first half of an NBA basketball game against the Dallas Mavericks in Houston, Friday, March 14, 2025. (AP Photo/Ashley Landis)

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