Gold Futures Rise Amid Economic Uncertainty
Gold futures saw a 1.1% increase, rising from Monday’s close of $3,820.90 to $3,863.10 per ounce on Tuesday. This marks the first time precious metals have opened above $3,800.
Ongoing economic uncertainty, coupled with low interest rates, has been a key factor in this uptick. Discussions between President Trump and Congress leaders concluded early Wednesday without reaching any budget agreement to prevent potential government shutdowns. Additionally, Trump announced tariffs on foreign films and timber products, which build on previous tariffs for kitchen cabinets, upholstered furniture, and heavy trucks introduced last week.
The implications of these new tariffs remain unclear, and potential government closures may delay the release of important economic data in the near future. In times of economic unpredictability, gold’s reputation as a safe haven becomes particularly appealing.
On Tuesday, the price of gold futures opened at $3,863.10, which represents a 3.1% increase from the earlier week’s price of $3,747 on September 23rd. Over the past month alone, gold futures have surged by 12.5% when compared to the opening price of $3,432.50 on August 29, 2025.
Investing in gold typically involves a four-step process:
- Set goals.
- Decide on the allocation.
- Select the form of gold.
- Consider the investment timeline.
Today, we’re zeroing in on the second step, which is determining the right allocation of funds. Once you’ve defined your investment goals for purchasing gold, you’ll have a clearer idea of how much to invest.
Allocation refers to how you diversify your portfolio across various assets, such as stocks, bonds, and gold. Over time, as the values of these assets fluctuate, establishing target allocations can help manage long-term risk.
For instance, if stock values rise, without regularly adjusting your portfolio, you might end up with an overemphasis on stocks.
Scott Travers, author of “The Coin Collector’s Survival Manual,” suggests maintaining between 5% and 15% of your net worth in gold.
It’s also worth noting that your target allocation should account for the gold you already possess. Travers advises checking your jewelry box before making new purchases, especially since the value of gold has spiked over the past year. You might be surprised at how much your gold jewelry is really worth.
Be cautious about selling gems to buy gold coins, as dealer fees for both transactions can eat into your profits.
Whether you’re tracking gold prices from last month or last year, historical trends show a steady upward trajectory for precious metals.
Gold has experienced extended growth and decline cycles. After a growth phase from 2009 to 2011, it fell and failed to reach new highs for nearly nine years. During those stagnant years, not having a solid position in gold could negatively affect your investment returns. If that’s a concern, a lower allocation might be more suitable. Conversely, if you can tolerate a year of low performance in gold to attain greater rewards, you may want to aim for a higher percentage in your strategy.
Recently, analysts have expressed optimism about gold, with a Goldman Sachs survey predicting a rise to $3,700 per troy ounce by 2025. This prediction indicates a possible 40% annual increase from a January opening price of $2,633, driven largely by heightened demand from central banks and the uncertainties tied to US tariff policy changes.
For those interested in delving deeper into the historical value of gold, Yahoo Finance has been tracking gold prices since 2000.
