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Gold near record-highs on Fed rate cut bets; silver cracks $90
Gold edged toward its record high and silver surged past the historic $90 mark on Wednesday, propelled by softer U.S. inflation data that reinforced expectations for interest-rate cuts and ongoing geopolitical instability.
Spot gold rose 0.9% to $4,627.95 per ounce, near Tuesday’s all-time peak of $4,634.33. U.S. gold futures followed a similar trajectory. Silver, however, stole the spotlight, jumping 4.6% to $90.95 per ounce after breaking the $90 barrier for the first time—extending its year-to-date gain to nearly 28%.
“The data has been positive… these are the indicators that have further driven precious metals up,” said Brian Lan, managing director at GoldSilver Central, who sees silver potentially reaching $100 this year.
Inflation Data Fuels Rate Cut Optimism
The rally followed December’s U.S. core Consumer Price Index, which rose 0.2% monthly and 2.6% annually—below forecasts—bolstering bets that the Federal Reserve will cut rates later this year. Investors currently price in two 25-basis-point reductions in 2026, likely starting in June. Non-yielding assets like gold and silver typically benefit from lower interest rates and heightened uncertainty.
President Donald Trump seized on the figures to reiterate his call for “meaningful” rate cuts, even as global central bankers and Wall Street CEOs rallied behind Fed Chair Jerome Powell amid a Justice Department investigation. Analysts note that concerns over Fed independence and trust in U.S. assets are further driving safe-haven demand.
Geopolitical Tensions Add to Momentum
Trump’s recent comments urging Iranian protesters that “help is on its way” added to regional tensions, amplifying the flight to precious metals. Meanwhile, platinum climbed 4.7% to a one-week high of $2,432.80, while palladium advanced 3.7% to $1,910.08.
The broad-based rally underscores how monetary policy expectations and geopolitical risk are converging to create a powerful tailwind for precious metals as investors seek stability in an increasingly volatile landscape.
