NewsSilver Hits Record High at $89.16 Per Ounce as Gold Surges on US Inflation Data and Rate-Cut ExpectationsSilver Hits Record High at $89.16 Per Ounce as Gold Surges on US Inflation Data and Rate-Cut Expectations
Silver achieved a record high of $89.16 per ounce while gold surged near all-time peaks, driven by weaker US inflation data that strengthened expectations for Federal Reserve rate cuts. Geopolitical tensions and concerns about Fed independence following potential criminal charges against Chair Jerome Powell boosted safe-haven demand. Citigroup analysts upgraded forecasts to $5,000 for gold and $100 for silver within three months, reflecting strong bullish sentiment in precious metals markets.
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Silver reached a record high and gold surged near all-time peaks as weaker-than-expected US inflation data reinforced expectations for additional interest rate cuts. The precious metals rally gained momentum amid ongoing geopolitical tensions and concerns about Federal Reserve independence.
Record-Breaking Performance
The white metal demonstrated exceptional strength, advancing as much as 2.50% to touch $89.16 per ounce during trading sessions. Gold also participated in the rally, trading near its all-time peak levels as investors responded positively to the inflation data.
| Metal | Current Price | Daily Change | Performance |
|---|---|---|---|
| Silver | $88.98 per ounce | +2.40% | Record high at $89.16 |
| Gold | $4,616.28 per ounce | +0.60% | Near all-time peak |
| Platinum | Not specified | Advanced | Positive |
| Palladium | Not specified | Advanced | Positive |
Market Drivers and Economic Factors
Underlying inflation in December came in lower than feared, although economists noted the data was artificially depressed by the record-long government shutdown late last year. This weaker inflation reading supported the case for more aggressive interest rate cuts by the Federal Reserve.
Precious metals have made a strong start to 2026, building on blistering rallies from the previous year. The prospect of a criminal indictment against Federal Reserve Chair Jerome Powell has revived concerns about the monetary authority's independence, adding to safe-haven demand for precious metals.
Geopolitical Tensions Boost Haven Demand
Several geopolitical developments have contributed to increased haven demand for precious metals:
- Trump's capture of Venezuela's leader
- Renewed threats to take Greenland
- Violent protests in Iran that could potentially lead to regime change
Central bankers worldwide have rallied behind Powell, while JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon warned that political intervention could backfire.
Analyst Forecasts and Market Outlook
Citigroup Inc. analysts demonstrated strong bullish sentiment by upgrading their precious metals forecasts this week. The investment bank now projects gold to reach $5,000.00 per ounce and silver to hit $100.00 per ounce within the next three months.
| Forecast Timeframe | Gold Target | Silver Target |
|---|---|---|
| Next 3 months | $5,000.00 per ounce | $100.00 per ounce |
Silver's Exceptional Performance
Silver significantly outperformed gold last year, surging almost 150% thanks to a short squeeze in October and persistent supply tightness in London. The metal topped $89.00 per ounce to reach its record high on Tuesday before paring some gains.
The Bloomberg Dollar Spot Index remained flat after rising 0.20% on Tuesday, providing a neutral backdrop for precious metals trading. As of 9:27 a.m. in Singapore, both gold and silver maintained their positive momentum, reflecting continued investor confidence in precious metals as safe-haven assets amid economic and geopolitical uncertainties.
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