Gold climbed on Wednesday to hit a record, while silver breached the $90 mark for the first time, as softer-than-expected U.S. inflation readings cemented bets for interest rate cuts amid ongoing geopolitical uncertainty.
Spot gold rose 1% to $4,632.03 per ounce as of 0715 GMT, after hitting a record high of $4,639.42 earlier in the session.
U.S. gold futures for February delivery rose 0.9% to $4,639.50. Spot silver jumped 3.6% to $90.11 per ounce, having shot up nearly 27% so far this year.
"U.S. Consumer Price Index figures showed that inflation remained relatively contained at 2.6% (year-on-year), and risk assets may be hoping for a similarly benign Producer Price Index reading to keep expectations alive for further monetary policy easing," said Tim Waterer, KCM Trade's chief market analyst.
The U.S. core CPI rose 0.2% month-on-month in December, falling short of analysts' expectations of a 0.3% m/m and 2.7% y/y increase.
U.S. core PPI data for December is due later in the day. U.S. President Donald Trump welcomed the inflation figures, reiterating his push for the U.S. Federal Reserve Chair Jerome Powell to cut interest rates "meaningfully."
Global central bank chiefs and top Wall Street bank CEOs lined up in support of Powell on Tuesday after news of the Trump administration's decision to investigate him.
The government's move drew condemnation from former Fed chiefs as well. Analysts say worries around trust in U.S. assets, such as the dollar, and Fed independence added to safe-haven demand.
Investors expect two 25-basis-point rate cuts this year, with the earliest in June. Low-interest-rate environment and geopolitical or economic uncertainty traditionally favour non-yielding assets like gold.
ANZ expects gold to trade above $5,000/oz in the first half of 2026, the bank said in a note on Wednesday.
For silver, the next big figure will be the $100 mark, and high two-digit percentage gains for the metal seem likely this year, said GoldSilver Central managing director Brian Lan.
Elsewhere, spot platinum climbed 2.7% to $2,386.60 per ounce, after touching a one-week high. It hit a record $2,478.50/oz on December 29. Palladium was up 0.8% at $1,854.70 per ounce. - Reuters
