Silver tops $91 as gold gains amid inflation worries

Silver prices rocketed through the $91 per ounce mark on Wednesday, marking an unprecedented milestone in the precious metals market as investors flocked to safe-haven assets amid persistent inflation concerns and rising expectations of U.S. interest rate cuts. 

Spot silver surged more than 5% to touch $91.5535 an ounce, while gold was within $10 of an all-time peak. This follows gold’s record-breaking surge above $4,600 per ounce on January 12.

Investors expressed excitement over the rise in the price of precious metals

Lower interest rates tend to erode the opportunity cost of holding precious metals, thereby boosting their appeal as a store of value. Analysts in the United States noted that the underlying inflation level in the country as of December last year was lower than what they had previously forecasted, sparking heated debates among individuals. In an attempt to address this controversy, they claimed that the sudden drop in the underlying inflation level was due to the government shutdown that took place from October 1 to November 12, 2025.

In the meantime, reports have highlighted that the price of precious metals has continued to rise drastically since last year, capitalizing on the current situation in the crypto ecosystem regarding the possible indictment of Jerome Powell, the Chair of the U.S. Federal Reserve. Notably, Powell’s incident raises concerns about the central bank’s independence.

Still, sources confirmed that the Fed chair acquired a substantial support system from central bankers worldwide. However, Jamie Dimon, the CEO of JPMorgan Chase, cautioned that political interference poses a risk to the entire ecosystem.

On the other hand, U.S. President Donald Trump’s actions have played a crucial role in increasing demand for Haven assets (investments that typically retain or gain value during economic downturns). These actions include the president’s move against Nicolás Maduro, the president of Venezuela, and his renewed threats concerning Greenland. Another factor that has contributed to this boost is the violent protests in Iran that are anticipated to cause the potential collapse of the Islamic Republic of Iran’s government.

In response to the market excitement, analysts at Citigroup Inc., a major American multinational investment bank and financial services corporation, have increased their forecasts for the prices of gold and silver over the next three months. They now expect gold to reach $5,000 per ounce and silver to reach $100 per ounce. 

Heightened tension in the market impacts silver’s global supplies

By 2025, reports indicated that silver had outperformed gold by approximately 150%, driven by a short squeeze in October and ongoing supply constraints in London.

Meanwhile, reports noted that the situation in the market is likely to worsen after sources highlighted that traders are eagerly awaiting the release of results regarding the U.S. Section 232 investigation, which they believe could lead to the imposition of tariffs on silver. Responding to fears about this potential tax, investors have reportedly stored this metal in US warehouses, which has impacted global supplies and caused declines.

Apart from the U.S., Singapore also encountered a rise in the prices of precious metals, according to reports released today at 10:25 a.m. To break this down, reports stated that the Asian country’s spot gold price escalated to $4,621.92 an ounce, reflecting a 0.8% increase in silver to $89.7457, which also saw a 3.2% surge, as well as platinum and palladium.

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