Emre Yumlu 
Precious metals are delivering one of their strongest rallies in recent years, drawing intense attention from global markets. A combination of softer-than-expected U.S. inflation data, growing expectations of Federal Reserve (Fed) rate cuts, rising geopolitical risks, and renewed concerns over central bank independence has pushed investors back toward traditional safe-haven assets. Against this backdrop, both gold and silver have surged to historic highs.
Gold Tests a New All-Time High
Spot gold climbed sharply on Wednesday, reaching a record level of $4,639.42 per ounce in early trading before stabilizing near $4,633.40, representing a daily gain of roughly 1%. The rally was mirrored in futures markets, where February U.S. gold contracts rose 0.8% to $4,640.90.
This synchronized move across spot and futures markets underscores how sensitive gold prices have become to shifts in interest rate expectations. As real yields decline and confidence grows that monetary policy may ease, gold’s appeal as a store of value strengthens.
Silver’s Powerful Breakout Above $90
Silver has outperformed gold by a wide margin. Spot silver surged past the $90 per ounce threshold for the first time in history, peaking at $91.53. In just the first two weeks of 2026, silver has gained approximately 27%, reflecting a mix of safe-haven demand and speculative momentum.
The scale and speed of silver’s move suggest that investors are increasingly seeking assets that can offer both inflation protection and higher upside potential during periods of macro uncertainty.
Inflation Data Reinforces Rate Cut Expectations
Recent U.S. inflation figures played a critical role in this rally. Core CPI increased 0.2% month-over-month and 2.6% year-over-year, coming in below market expectations. These readings reinforced the perception that inflation pressures remain contained, giving the Fed more room to pivot toward a looser policy stance.
Market participants are now closely monitoring upcoming core PPI data for further confirmation of this trend.
Fed Independence Concerns and Global Uncertainty
Following the inflation release, President Donald Trump’s renewed calls for interest rate cuts intensified debate around the Federal Reserve’s independence. Such rhetoric has added another layer of uncertainty to the global outlook, historically a supportive factor for gold demand.
Markets are currently pricing in the possibility of two 25-basis-point rate cuts in 2026, further underpinning precious metals.
Rising Targets: $5,000 Gold, $100 Silver?
If current macro conditions persist, analysts see scope for gold to exceed $5,000 per ounce in the first half of 2026, while $100 silver is increasingly viewed as the next major psychological level. Other metals are also participating, with platinum up 4% to $2,415.95 and palladium gaining 3.3% to $1,899.44.
Overall, the trend across precious metals remains decisively upward, supported by macroeconomic and geopolitical tailwinds.
This content does not constitute investment advice.
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