Gold Prices Surge to New Records While Silver Breaks $90
Gold Prices Surge to New Records While Silver Breaks $90
Precious metals surged to historic levels on Wednesday, with gold setting a new all-time high and silver breaking above $90 per ounce for the first time. The sharp move reflects growing investor demand for safe-haven assets amid rising geopolitical risks and uncertainty around U.S. monetary policy.
At the same time, softer U.S. inflation data has strengthened expectations for interest rate cuts, adding further support to gold and silver prices.
Gold Prices Hit New Records
Spot gold climbed 0.9% to $4,627.72 per ounce by 10:01 GMT, after briefly touching a record $4,639.48 earlier in the session. U.S. gold futures for February delivery also moved higher, gaining 0.8% to $4,636.
Market analysts say gold’s traditional role as a hedge against uncertainty is once again attracting investors.
Jamie Dutta, chief market analyst at Nemo.money, noted that a combination of geopolitical instability, fiscal uncertainty, and concerns over the Federal Reserve’s independence is pushing prices higher.
Geopolitical Tensions Drive Safe-Haven Demand
Ongoing unrest in Iran remains a major factor behind the rally in precious metals. Protests in the country have kept tensions elevated, reinforcing demand for assets like gold that tend to hold value during crises.
According to the U.S.-based HRANA human rights group, the death toll from the protests has reached 2,571, increasing fears of possible U.S. involvement and further instability in the region.
These developments have encouraged investors to reduce exposure to riskier assets and shift toward bullion.
Federal Reserve Uncertainty Adds to Market Anxiety
Concerns about the independence of the U.S. Federal Reserve have also played a role in supporting gold prices. On Tuesday, central bank leaders from around the world publicly backed Fed Chair Jerome Powell after reports that the Trump administration had threatened him with a criminal indictment.
Such actions, analysts warn, could weaken confidence in U.S. institutions and assets, including the U.S. dollar typically a positive signal for gold.
President Donald Trump has continued to call for “meaningful” interest rate cuts, increasing political pressure on the Fed.
Inflation Data Strengthens Rate Cut Expectations
Fresh U.S. inflation data further boosted precious metals. The core Consumer Price Index (CPI) rose 0.2% month-on-month and 2.6% year-on-year in December, according to the Bureau of Labor Statistics.
With inflation showing signs of easing, traders now expect two interest rate cuts this year. Lower interest rates generally favor gold and silver, as they do not offer interest income and become more attractive when yields fall.
Silver, Platinum, and Palladium Also Rally
Silver saw especially strong gains, jumping 4% to $90.46 per ounce, after reaching an intraday record of $91.53. The metal has risen nearly 27% in just the first 14 days of the year, highlighting strong momentum.
Dutta pointed out that long-term price targets are increasingly focused on psychological levels, such as $5,000 for gold and $100 for silver.
Other precious metals also moved higher:
- Platinum rose 3.5% to $2,406.75 per ounce, after touching a one-week high earlier in the session. It previously hit a record $2,478.50 on December 29.
- Palladium edged up 0.1% to $1,840.19 per ounce.
Market Outlook: Why Precious Metals Are in Focus
The current rally in precious metals reflects a rare alignment of supportive factors: geopolitical risk, political pressure on central banks, and shifting interest rate expectations. While prices are already at historic levels, ongoing uncertainty could keep volatility high across global markets.
Investors will continue to watch inflation data, central bank signals, and developments in the Middle East for clues on where gold and silver prices may head next.
Disclaimer
This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Market conditions can change rapidly, and readers should conduct their own research or consult a qualified financial professional before making any investment decisions.
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