Silver Hits Record At $89.16 Per Ounce, Gold Rises as US Data Fuels Rate-Cut Bets
Precious metals have made a strong start to 2026, after blistering rallies last year, with the prospect of an indictment against Jerome Powell reviving worries about the authority’s independence.
Silver hit a record high and gold rose as weaker-than-expected US inflation data supported the case for more interest rate cuts, while the geopolitical situation remained tense.
The white metal advanced as much as 2.5% to touch $89.1644 an ounce, while gold traded neared an all-time peak. 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.
(Image: Bloomberg)
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. It outperformed gold last year, surging almost 150% thanks to a short squeeze in October and persistent supply tightness in London.
Spot gold rose 0.6% to $4,616.28 an ounce as of 9:27 a.m. in Singapore. Silver added 2.4% to $88.9830, while platinum and palladium also advanced. The Bloomberg Dollar Spot Index was flat after rising 0.2% on Tuesday.
