Gold prices surged to a fresh all-time high in the global market, while silver also set a new record, driven by ongoing geopolitical uncertainty and lower-than-expected US inflation data.

According to a report by news agency Reuters, spot gold prices rose by 1% on Wednesday (14 January) to USD 4,633.40 per ounce. Earlier in the session, prices touched a record high of USD 4,639.42 per ounce. US gold futures for February delivery gained 0.8%, trading at USD 4,640.90 per ounce.

Silver also saw a sharp rally on the same day. Spot silver prices jumped 4.2%, crossing the USD 90 per ounce mark. So far this year, silver prices have increased by nearly 27%.

Tim Waterer, chief market analyst at KCM Trade, said the latest US Consumer Price Index (CPI) data indicate that inflation remains relatively under control. 

On a year-on-year basis, inflation has eased to 2.6%, sustaining expectations that the US Federal Reserve may further ease its monetary policy, supporting risk assets.

In December, US core CPI rose 0.2% month-on-month and 2.6% year-on-year, both lower than analysts’ expectations of 0.3% and 2.7% respectively. Data on the US Producer Price Index for December are due to be released later in the day.

US President Donald Trump welcomed the inflation figures and reiterated his call for Federal Reserve Chair Jerome Powell to cut interest rates “meaningfully”. However, reports of a potential investigation into Powell by the Trump administration have drawn criticism and put the Federal Reserve under scrutiny. 

In response, on Tuesday, global central bank chiefs and leading Wall Street bank chief executives expressed support for Powell.

Analysts say concerns over the Fed’s independence and waning confidence in US assets have increased demand for safe-haven assets such as gold. Investors currently expect two interest rate cuts of 25 basis points this year, with the first potentially coming in June.

Gold, a non-yielding asset, tends to perform well in periods of low interest rates and geopolitical or economic uncertainty. In a note, ANZ Bank said gold prices could trade above USD 5,000 per ounce in the first half of 2026.

Meanwhile, Brian Lan, managing director of GoldSilver Central, said the next major target for silver is USD 100 per ounce. He added that silver could see a double-digit percentage increase over the course of the year.

Other precious metals also posted strong gains. Spot platinum prices rose 4% to USD 2,415.95 per ounce, the highest level in a week. Platinum had previously hit a record high of USD 2,478.50 per ounce on 29 December. Palladium prices climbed 3.3% to USD 1,899.44 per ounce on the same day.