Gold hits record high, silver breaks $90 mark
Gold prices surged to fresh record highs on Wednesday, while silver broke above the $90-per-ounce level for the first time, driven by softer-than-expected U.S. inflation data that strengthened expectations for interest rate cuts amid persistent geopolitical uncertainty.
Spot gold rose 1% to $4,632.03 per ounce by 0715 GMT, after touching an all-time high of $4,639.42 earlier in the session. U.S. gold futures for February delivery gained 0.9% to $4,639.50.
Silver posted even stronger gains, with spot prices jumping 3.6% to $90.11 per ounce, extending year-to-date gains to nearly 27%.
According to Tim Waterer, chief market analyst at KCM Trade, U.S. Consumer Price Index data showed inflation remained relatively contained at 2.6% year-on-year, prompting hopes that Producer Price Index figures would deliver a similarly benign reading and support expectations for further monetary easing.
U.S. core CPI increased 0.2% month-on-month in December, below market expectations of a 0.3% rise and an annual rate of 2.7%. Core PPI data for December is scheduled for release later in the day.
U.S. President Donald Trump welcomed the inflation data, reiterating his call for Federal Reserve Chair Jerome Powell to cut interest rates “meaningfully.”
Meanwhile, global central bank leaders and top Wall Street executives expressed support for Powell following reports that the Trump administration had launched an investigation into him, a move that also drew criticism from former Federal Reserve chairs.
Analysts noted that concerns over confidence in U.S. assets—particularly the dollar—as well as questions surrounding Federal Reserve independence, have increased demand for safe-haven assets.
Markets are currently pricing in two 25-basis-point interest rate cuts this year, with the first expected as early as June. A lower interest-rate environment, combined with geopolitical and economic uncertainty, typically supports non-yielding assets such as gold.
ANZ expects gold prices to trade above $5,000 per ounce in the first half of 2026, according to a note released on Wednesday.
For silver, analysts see the $100-per-ounce level as the next major milestone, with the metal likely to post high double-digit percentage gains this year, said Brian Lan, managing director of GoldSilver Central.
Elsewhere, spot platinum climbed 2.7% to $2,386.60 per ounce after hitting a one-week high. It had previously reached a record $2,478.50 per ounce on December 29. Palladium rose 0.8% to $1,854.70 per ounce.
Source: Reuters