Silver and Gold Running Up

Gold prices ran up again on Wednesday, setting another record, while silver pushed past the $90 mark for the first time, as weaker-than-expected U.S. inflation data led investors to price in interest rate cuts amid continued geopolitical uncertainty.

Spot gold climbed by 1% to $4,633.40 an ounce by early Asian trading, after briefly touching a new high of $4,639.42. February U.S. gold futures also moved up, gaining 0.8% to trade at $4,640.90.

Silver shot up 4.2% to $90.59 an ounce, breaking through the $90 level after already having run up nearly 27% since the start of the year, as investors continued to pile into precious metals.

Market analysts said the softer inflation reading has helped keep expectations alive that policymakers will ease off on tight monetary policy. U.S. consumer price data showed inflation came in below forecasts, reinforcing hopes that the Federal Reserve may soon bring rates down.

Core inflation edged up just 0.2% month-on-month and 2.6% year-on-year in December, falling short of estimates. Investors are now waiting to see whether producer price data will back up the idea that inflation pressures are continuing to cool off.

President Donald Trump seized on the figures, renewing his calls for the Fed to cut rates sharply. At the same time, senior central bankers and Wall Street executives closed ranks around Fed Chair Jerome Powell after the administration moved to investigate him.

Concerns about the Fed’s independence and confidence in U.S. assets have added to demand for gold, with investors parking money in traditional safe havens rather than banking on riskier assets.

Markets are currently factoring in two quarter-point rate cuts this year, with the first expected as early as June. Lower interest rates tend to lift non-yielding assets, particularly when political or economic risks flare up.

ANZ said it expects gold to trade above $5,000 an ounce in the first half of 2026, noting that if borrowing costs come down further, investor demand should hold up.

Silver could be next to close in on the $100 level, analysts said, as strong inflows suggest the metal may continue to cash in on the broader rally.

Elsewhere, platinum jumped 4% to $2,415.95 an ounce, while palladium picked up 3.3% to $1,899.44.

Vocabulary List: Money-Related Phrasal Verbs

1. run up

Definition: to increase quickly in value or amount

Example: Gold prices have run up sharply this year due to economic uncertainty.

Question: What factors can cause commodity prices to run up suddenly?

2. push past

Definition: to rise above a certain level or limit

Example: Silver pushed past $90 an ounce for the first time.

Question: Why is pushing past a psychological price level important for investors?

3. price in

Definition: to include expected future events in current market prices

Example: Markets have priced in two interest rate cuts this year.

Question: How do investors decide which events to price in?

4. pile into

Definition: to invest heavily and quickly in an asset

Example: Investors piled into precious metals during the inflation scare.

Question: What risks are there when too many investors pile into the same asset?

5. ease off

Definition: to reduce intensity or pressure

Example: Traders expect the Fed to ease off its tight monetary policy.

Question: When should central banks ease off interest rate increases?

6. bring rates down

Definition: to lower interest rates

Example: Weaker inflation data increased hopes the Fed would bring rates down.

Question: How do lower interest rates affect borrowers and savers differently?

7. seize on

Definition: to quickly use an opportunity or piece of information

Example: The president seized on the inflation data to renew calls for rate cuts.

Question: Why do politicians often seize on economic data?

8. add to

Definition: to increase or contribute further

Example: Political uncertainty added to demand for safe-haven assets.

Question: What kinds of events add to investor fear in financial markets?

9. park money in

Definition: to place money somewhere considered safe

Example: Many investors parked their money in gold during market volatility.

Question: Where do people usually park money during economic crises?

10. factor in

Definition: to consider something when making a decision

Example: Markets are factoring in slower economic growth next year.

Question: What should long-term investors factor in when choosing assets?

11. cash in on

Definition: to benefit financially from a situation

Example: Silver has cashed in on strong demand and rising prices.

Question: Can cashing in on market trends ever be risky?

12. hold up

Definition: to remain strong or stable

Example: Gold demand may hold up if rates continue to fall.

Question: What helps an asset hold up during global uncertainty?

Discussion Questions

1. Why do investors often pile into gold when inflation data comes in lower than expected?

2. Do you think markets sometimes price in interest rate cuts too early? Why or why not?

3. How does geopolitical risk add to demand for safe-haven assets?

4. In your country, where do people usually park their money during unstable economic periods?

5. Should central banks ease off interest rate hikes as soon as inflation cools, or wait longer?

6. Can political leaders seize on economic data in misleading ways?

7. What could cause gold prices to run up even further in the next year?

8. Is it better for investors to cash in on short-term trends or focus on long-term stability?