Emre Yumlu 
Global financial markets are closely watching the upcoming interest rate decision from the U.S. Federal Reserve (Fed), scheduled for later today. As anticipation builds, gold prices remain relatively calm with modest gains, while silver continues to surge, pushing decisively above the $60 level and setting fresh historical records. The divergence between the two precious metals reflects differing demand dynamics and market positioning ahead of key monetary policy signals.
Gold Trades in a Narrow Range Before the FED Announcement
Spot gold recorded a mild increase of 0.1%, rising to $4,206.61 per ounce during the session. Meanwhile, U.S. February gold futures edged up 0.2% to $4,244.70. Market participants describe gold’s current behavior as cautious, with investors avoiding aggressive positioning until Federal Reserve Chair Jerome Powell provides clearer guidance on the future path of interest rates.
The Federal Open Market Committee (FOMC) meeting is set to conclude at 19:00 (UTC), followed by Powell’s press conference at 19:30. Current market pricing suggests an 88.6% probability of a 25-basis-point rate cut. While expectations of lower rates typically support gold prices, uncertainty around the pace and scope of future easing is keeping short-term movements restrained.
Silver Breaks Records Above the $60 Mark
In contrast to gold’s muted performance, silver is experiencing a powerful upward momentum. Spot silver climbed as high as $61.46 earlier in the session, marking an all-time high. It later stabilized around $61.06, still showing a daily gain of approximately 0.6%. Just one day earlier, silver had already captured market attention by decisively breaking above the $60 threshold.
This sharp rally is being driven by a combination of tightening global supply, robust industrial demand, and heightened investor interest. Another key factor supporting silver prices is the rapid contraction of the gold-to-silver ratio, which is making silver increasingly attractive from a relative valuation perspective. Additionally, strong physical demand from major consuming markets such as India is reinforcing the bullish trend.
Industrial Demand Set to Fuel Long-Term Silver Growth
According to recent projections from the Silver Institute, silver’s industrial demand is expected to rise significantly through 2030. Expanding sectors such as solar energy, electric vehicles, infrastructure development, data centers, and artificial intelligence are all set to play a major role in this growth. Furthermore, silver’s inclusion on the United States’ critical minerals list, combined with expectations of a prolonged low-interest-rate environment, continues to provide structural support for prices.
This content does not constitute investment advice.
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