Gold Steady Near Record High As US Inflation Supports Rate Cuts

Gold rose toward a record high as weaker-than expected US inflation data supported the case for more interest rate cuts, while the geopolitical situation remained combustible.

Bullion traded above $4,600 an ounce on Wednesday, after reaching an all-time peak of $4,634.55 in the previous session before closing slightly lower. Underlying inflation in December was not as high as feared, although economists said the data was artificially depressed by the record-long government shutdown late last year.

Precious metals have made a strong start to 2026, after blistering rallies last year, with the prospect of a criminal indictment against Federal Reserve Chair Jerome Powell reviving worries about the monetary authority's independence. Central bankers across the world have rallied behind Powell and JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said the political intervention could backfire.

Haven demand has also been aided by US President Donald Trump's capture of Venezuela's leader, his renewed threats to take Greenland, and violent protests in Iran that could lead to a toppling of the Islamic regime there. Citigroup Inc. analysts upgraded their forecasts this week for gold and silver to $5,000 per ounce and $100 an ounce, respectively, in the next three months.

Silver topped $89 an ounce to reach a record high on Tuesday, before paring some gains. The white metal outperformed gold last year, surging almost 150% thanks to a short squeeze in October and persistent supply tightness in London.

Spot gold rose 0.4% to $4,606.45 an ounce as of 8:47 a.m. in Singapore. Silver added 1.5% to $88.2384, while platinum and palladium also advanced. The Bloomberg Dollar Spot Index was flat after rising 0.2% on Tuesday.

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