Gold hits $4,000 for the first time ever

The price of gold surpassed $4,000 on Tuesday, Oct. 7 for the first time ever as the government entered its seventh day of a partial shutdown.

Gold futures were trading at $4,006 around 11 a.m. ET before slipping under the benchmark but quickly recovered. The commodity is up 50% year to date.

Gold has continued to rise as the U.S. dollar weakens and inflation persists, according to the CME Group, an American financial services company.

The dollar is down 10% year to date. Additionally, the current rate of inflation is 2.9%, which is above the Federal Reserve’s 2% target.

Investors are worried about the potential for inflation to erode the purchasing power of the dollar, according to CME Group analysis. As a result, many are using gold to hedge their portfolios.

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Gold has historically gone up during times of uncertainty and inflation, which is what makes it appealing to investors.

According to CNBC, banks and retail investors are buying gold at an increased pace. Countries, including China, are moving away from U.S. Treasurys after President Donald Trump imposed sanctions on Russia over its 2022 invasion of Ukraine.

While speaking at the Greenwich Economic Forum, Founder of Bridgewater Associates Ray Dalio said gold should make up about 15% of investment portfolios.

"Gold is a very excellent diversifier of the portfolio," he said. "It is the one asset that does very well when the typical parts of your portfolio go down."

Investors can access gold through physical holdings, gold ETFs and futures contracts.

Gold bars continue to fly off the shelves of retailers, including Costco and Walmart, as investors seek to get in on the action.

Costco got in on the gold-selling business in 2023, but the 1-ounce gold bars quickly sold out after the launch. The membership warehouse club has since struggled to keep up with demand as the price of gold has steadily risen.

In October 2023, Costco had gold bars listed for just under $2,000, USA TODAY previously reported. By May 2025, gold bars were listed above $3,000. In September, USA TODAY found a gold bar listed for $3,700 but the next day, it was unavailable. USA TODAY was unable to find gold bars in stock on Costco's site as of Oct. 7.

However, some gold bars appear to be in stock on Walmart's site. USA TODAY found a 5-gram gold bar for $751 and its 1-ounce Gold Bar PAMP Suisse Lady Fortuna Veriscan for $4,193.

With gold prices soaring, gold bars have reached 100% gain for investors who purchased them when they first went on sale and a more than 50% gain for those who purchased one a year ago.

Michelle Del Rey is a trending news reporter at USA TODAY. Reach her at mdelrey@usatoday.com

This article originally appeared on USA TODAY: Gold price surpasses $4,000 for the first time ever