Source The investing. Com
NEW YORK — Precious metals markets witnessed a historic session on Tuesday as gold scaled a fresh all-time peak and silver breached the psychologically significant $90 per ounce barrier. The rally was ignited by “benign” U.S. inflation data, which strengthened the case for the Federal Reserve to implement deeper interest rate cuts in the coming months.
Record-Breaking Levels
According to market data, spot gold climbed as high as $4,639.64 per ounce, marking a new historic ceiling for the yellow metal. Meanwhile, silver stole the spotlight by surging over 4% to reach an intraday high of $91.55 per ounce, its first time ever trading above the $90 mark.
The rally in silver has been particularly aggressive, with the metal gaining roughly 13% in the first two weeks of 2026 alone. Analysts noted that silver’s “high-beta” nature—meaning it tends to move more explosively than gold—helped it outperform as investors rushed to hedge against economic uncertainty.
CPI Data: The Catalyst
The primary driver for the surge was the latest Consumer Price Index (CPI) report. The data showed that core inflation (excluding volatile food and energy) rose by just 0.2% month-on-month, slightly below the 0.3% expected by economists.
Annual Core CPI: Held steady at 2.6%.
Market Impact: The softer-than-expected figures fueled bets that the Federal Reserve will pivot toward a more aggressive easing cycle.
The Yield Connection: Since gold and silver provide no yield (interest), they become much more attractive to investors when interest rates fall, reducing the “opportunity cost” of holding them.
“The benign CPI data portends a higher likelihood of Fed rate cuts in the future,” said David Meger, director of metals trading at High Ridge Futures. “This has created a perfect environment for bullion to thrive.”
Geopolitical & Political Turbulence
Beyond the economic data, a “perfect storm” of uncertainty is supporting safe-haven demand:
Fed Independence: Recent reports of a criminal investigation into Federal Reserve Chair Jerome Powell have rattled markets, leading to concerns about political interference in monetary policy.
Middle East Tensions: Ongoing unrest in Iran and the threat of new 25% tariffs on any nation doing business with Tehran have kept investors on edge.
Global Trade: Renewed trade-related friction and the U.S. administration’s pursuit of Greenland have added layers of unpredictability to the global stage.
Market Outlook for 2026
While the current momentum is bullish, some analysts are warning of short-term volatility. Commodity experts suggest that while gold could potentially eye the $5,000 mark by the end of the year, silver may face intermittent profit-booking after its vertical ascent.
