FX.co ★ Silver at Record Highs

Silver surged to over $87 per ounce for the first time on Tuesday, following U.S. inflation data that indicated softer price pressures, thereby lessening the short-term risk of a more stringent monetary policy. In December, the headline Consumer Price Index (CPI) remained steady at 2.7%, while the core CPI held at 2.6%, marking the lowest rate since 2021. The monthly core CPI also came in below expectations, which eased concerns regarding a sustained acceleration in inflation. This inflationary signal bolstered demand for precious metals as investors anticipated a more favorable monetary policy trajectory. Additional buying was driven by safe-haven flows after headlines emerged about a Department of Justice inquiry involving Federal Reserve Chair Jerome Powell, coupled with President Trump's announcement of a 25% tariff on countries engaging in trade with Iran.