Silver Soars to New Heights, Gold Gains Ground as US Economic Data Boosts Rate-Cut Expectations

Bloomberg -- Silver reached an all-time high, and gold experienced an uptick as disappointing US inflation figures bolstered predictions for further interest rate reductions, amid ongoing geopolitical tensions. The price of silver surged by 2.5%, peaking at $89.1644 per ounce, while gold approached its historic high. December's inflation, although lower than anticipated, was impacted by last year’s prolonged government shutdown, according to economists. Precious metals have had a robust start to 2026 following significant increases last year, as concerns about the independence of the Federal Reserve were reignited by the potential criminal indictment of its Chair, Jerome Powell. Global central bankers have expressed support for Powell, and JPMorgan Chase & Co. CEO Jamie Dimon cautioned that political interference could have negative consequences. Demand for safe-haven assets has also been influenced by US President Donald Trump’s actions regarding Venezuela and ongoing unrest in Iran that might overthrow its current regime. Citigroup Inc. analysts projected higher prices for gold and silver this week, forecasting $5,000 per ounce for gold and $100 per ounce for silver within three months. On Tuesday, silver hit over $89 an ounce before consolidating gains, significantly outpacing gold with a nearly 150% increase last year, driven by a short squeeze in October and sustained supply constraints in London. As of 9:27 a.m. in Singapore, spot gold rose 0.6% to $4,616.28 per ounce, while silver climbed 2.4% to $88.9830, alongside gains in platinum and palladium. The Bloomberg Dollar Spot Index remained steady after a 0.2% increase on Tuesday.