Gold nears record while silver breaks $90 as rate-cut hopes surge

Gold hovered just below a fresh all-time high Wednesday and silver leapt past $90 for the first time, as cooler US inflation data boosted expectations of Federal Reserve rate cuts and intensified demand for safe-haven metals.

Spot gold climbed 0.9% to $4,627.95 an ounce by 0406 GMT after setting a record $4,634.33 a day earlier. US gold futures added 0.8% to $4,635.60.

Silver jumped 4.6% to $90.95, extending a nearly 28% rally so far this year. Analysts said easing inflation, lower unemployment and geopolitical tensions have fuelled buying, with some calling $100 silver a realistic next milestone.

US core inflation rose 0.2% month-on-month and 2.6% year-on-year in December, undershooting forecasts. President Donald Trump hailed the figures as he pressed the Fed to cut interest rates, despite alarm among former central bank chiefs over political pressure.

Gold analysts said doubts over Fed independence and uncertainty in global markets strengthened safe-haven flows. Investors are pricing in two quarter-point rate cuts this year, potentially beginning in June.

Other precious metals also rallied: platinum surged 4.7% to $2,432.80, and palladium gained 3.7% to $1,910.08.