Silver tops $90 as gold nears record on market rally
Silver surged above $90 an ounce for the first time, while gold edged close to a record high, as criticism of the Federal Reserve, expectations of additional U.S. rate cuts, and a tense geopolitical environment fueled a strong rally in precious metals.
The white metal climbed as much as 5.3%, reaching $91.5535 an ounce, while gold traded within $10 of its all-time peak, News.Az reports, citing Bloomberg.
December’s underlying U.S. inflation came in lower than feared, though economists noted the figures were artificially suppressed due to the record-long government shutdown. The Fed is anticipated to pause rate cuts for several months, yet swaps markets are currently pricing in at least two more cuts later in the year.
Precious metals have started 2026 strongly, building on dramatic gains in 2025, with concerns over a potential criminal indictment of Federal Reserve Chair Jerome Powell reigniting worries about the central bank’s independence. Central bankers worldwide have voiced support for Powell, and JPMorgan Chase CEO Jamie Dimon warned that such a move could backfire.
Haven demand has also been influenced by U.S. President Donald Trump’s capture of Venezuela’s leader, renewed threats to seize Greenland, and violent protests in Iran that could threaten the Islamic regime. In response, Citigroup upgraded its three-month forecasts for gold and silver to $5,000 per ounce and $100 per ounce, respectively.
Silver is benefiting from a broader rotation into commodities, according to Hao Hong, chief investment officer at Lotus Asset Management Ltd., who said the rally “has a lot of room to run this year, with prices potentially reaching $150 an ounce by year-end.”
The white metal outperformed gold last year, climbing 150% due to a short squeeze in October, ongoing supply tightness in London, and heavy speculative buying. Traders are also closely watching the outcome of the U.S. Section 232 investigation, which could impose import tariffs on silver.
The latest gains in precious metals underline how strong investment flows have been, with speculative interest surging from Shanghai to New York. Trading volumes on the Comex and the Shanghai Futures Exchange have remained at elevated levels since late December.
Silver surged 4.6% to $90.9590 an ounce as of 12:31 p.m. in Singapore. Gold rose 0.9% to $6,626.43, near the all-time high of $4,634.55 reached on Tuesday. Platinum and palladium both jumped more than 4%, while the Bloomberg Dollar Spot Index was steady.
Similar news
