Silver prices surpassed $90 per ounce for the first time, while gold prices also advanced, as weaker-than-expected US inflation data bolstered the case for further interest rate cuts, and geopolitical tensions remained elevated.
Silver prices surged by as much as 3.6%, reaching $90.0394 per ounce, while gold traded within a range approximately $15 below its record high. The US core inflation rate for December was not as high as anticipated, although economists noted that the prolonged government shutdown late last year complicated the interpretation of the data.
After a strong performance last year, precious metals have had an excellent start to 2026. News that Federal Reserve Chairman Jerome Powell could potentially face criminal prosecution has reignited investor concerns about the Fed's independence, prompting central bank governors worldwide to voice their support for Powell. JPMorgan Chase CEO Jamie Dimon stated that political interference could be counterproductive.
Geopolitical events, including US President Donald Trump's actions regarding the capture of a Venezuelan leader, renewed threats to annex Greenland, and violent protests in Iran, have also heightened safe-haven demand in the markets. Analysts at Citigroup this week raised their three-month price targets for gold and silver to $5,000 and $100 per ounce, respectively.
Last year, silver outperformed gold, posting gains of nearly 150%, primarily driven by a short squeeze in October and ongoing supply tightness in London.
As of 11:09 Singapore time, spot gold was up 0.7% at $4,620.06 per ounce. Silver rose 3.3% to $89.8065 per ounce, while platinum and palladium prices also climbed. The Bloomberg Dollar Index was largely flat after a 0.2% gain on Tuesday.
