Silver prices have achieved a historic milestone by surging above $90 per ounce for the first time ever, marking a significant breakthrough for the precious metal. The rally comes amid favorable market conditions driven by weaker-than-expected US inflation data that strengthens the case for additional Federal Reserve interest rate cuts.

Market Drivers Behind Silver's Historic Rise

The precious metals market is experiencing strong momentum as multiple factors align to support higher prices. Weaker US inflation data has reinforced expectations that the Federal Reserve may implement further interest rate cuts, creating a more favorable environment for precious metals investments. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like silver and gold.

Geopolitical tensions continue to contribute to the precious metals rally, as investors seek safe-haven assets amid global uncertainties. This combination of monetary policy expectations and geopolitical factors has created a supportive backdrop for silver's historic price breakthrough.

Precious Metals Performance in 2026

Precious metals have made a strong start to 2026, continuing the momentum from significant rallies experienced in the previous year. The sector's performance reflects broader market dynamics and investor sentiment toward alternative assets during periods of economic and political uncertainty.

Federal Reserve Independence Concerns

The precious metals rally has gained additional support from concerns about Federal Reserve independence following prospects of a criminal indictment against Chair Jerome Powell. This development has revived worries about potential political interference with the monetary authority's decision-making processes.

Central bankers worldwide have rallied behind Powell, demonstrating international support for Federal Reserve independence. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has warned that political intervention could backfire, highlighting the importance of maintaining the central bank's autonomy in monetary policy decisions.

Market Outlook and Implications

Silver's breakthrough above $90 per ounce represents a significant psychological and technical milestone for the precious metals market. The achievement reflects the convergence of multiple supportive factors, including monetary policy expectations, geopolitical tensions, and concerns about central bank independence.

The precious metals sector's strong performance into 2026 suggests continued investor interest in alternative assets amid ongoing economic and political uncertainties. Market participants are closely monitoring developments in US monetary policy and geopolitical situations that could further influence precious metals pricing.

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.

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.

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.