Silver prices surged to a fresh record high above $90 per ounce on Tuesday, extending their strong rally as softer U.S. inflation data reinforced expectations of interest rate cuts by the Federal Reserve later this year, while ongoing geopolitical and economic uncertainties continued to support safe-haven demand.
Spot silver jumped over 4% to trade around $90.6 per ounce, marking a new lifetime peak. The rally came after the latest U.S. inflation readings came in below market expectations, strengthening the case for a more accommodative monetary policy stance in the months ahead.
According to market participants, the slightly positive tone across global financial markets was driven by the benign U.S. Consumer Price Index data. The U.S. core CPI rose 0.2% month-on-month and 2.6% year-on-year in December, undershooting estimates of 0.3% and 2.7%, respectively. The data bolstered investor confidence that inflationary pressures are easing faster than anticipated.
Following the release, former U.S. President Donald Trump reiterated calls for “meaningful” interest rate cuts, adding to expectations that borrowing costs could move lower later this year. While the Federal Reserve is widely expected to keep rates unchanged at its January 27–28 meeting, markets are currently pricing in two rate cuts in 2026.
Lower interest rates are typically favourable for non-yielding assets such as silver, as they reduce the opportunity cost of holding bullion. At the same time, persistent geopolitical risks and broader economic uncertainties have continued to underpin demand for precious metals as a hedge.
With silver now trading at record levels, market participants remain focused on upcoming macroeconomic data and central bank signals to gauge whether the rally can sustain in the near term.