Gold prices edged closer to historic highs during Asian trading on Wednesday, supported by cooler U.S. inflation data and rising geopolitical tensions that revived demand for safe-haven assets. Silver outshone the broader metals complex, notching a fresh record above $90 an ounce, while platinum also rallied sharply.
Gold Holds Firm Near Historic Peak
Spot gold climbed 0.7% to $4,623.55 an ounce, remaining just below Tuesday’s all-time high of $4,634.33. U.S. gold futures for March advanced 0.6% to $4,627.10, reflecting sustained investor appetite across both physical and derivatives markets.
The rally follows the release of December U.S. consumer price index data, which came in below expectations. Core CPI rose 0.2% on the month and 2.6% year-on-year, reinforcing confidence that inflation pressures are easing steadily. Markets are now pricing in roughly two Federal Reserve rate cuts in 2026, with some analysts seeing scope for further easing if labor market conditions soften.
Silver and Platinum Outperform on Demand
Silver prices surged 3% to $90.04 an ounce, setting a new record and extending a rally fueled by both industrial demand and safe-haven buying. Platinum also jumped 4% to $2,415.21, moving closer to peaks reached last month as supply concerns and stronger automotive demand added momentum.
Key drivers behind the broader precious metals strength include:
- Easing inflation trends that strengthen the case for monetary easing
- Robust industrial demand, particularly for silver
- Portfolio hedging amid elevated geopolitical uncertainty
- Weaker real yields, improving the appeal of precious metals
Geopolitics and Fed Concerns Add Support
Geopolitical risks remain firmly in focus. Iran has been gripped by escalating anti-government protests, with reports indicating around 2,000 fatalities, heightening fears of broader instability in the Middle East. The situation has drawn sharp warnings from U.S. President Donald Trump, including threats of military action and a proposed 25% tariff on countries conducting business with Iran.
Additional support for gold came from concerns over the independence of the Federal Reserve after the Trump administration opened a criminal investigation involving Fed Chair Jerome Powell. While the move unsettled markets, prominent central bankers and major bank executives publicly defended Powell, emphasizing the importance of preserving central bank autonomy.
Together, softer inflation data, geopolitical tension, and institutional uncertainty continue to provide a powerful tailwind for gold and its peers as investors seek stability in volatile global markets.