Silver surpasses $90 for first time ever

Silver prices rose in European trading on Wednesday, extending gains for a fourth consecutive session and continuing to shatter record levels, after breaking above the $90 per ounce threshold for the first time ever, supported by strong demand from retail investors and the current decline in the US dollar against a basket of currencies.

Headline inflation data released on Tuesday in Washington renewed hopes that the Federal Reserve could cut interest rates twice over the course of this year. To reassess these expectations, investors are awaiting the release of further key US economic data.

Price overview

• Silver prices today: silver prices jumped by 5.3% to $91.56, marking an all-time high, from an opening level of $86.94, while the session low was recorded at $86.84.

• At settlement on Tuesday, silver prices rose by 2.1%, recording a third consecutive daily gain, amid strong demand for precious metals as safe havens.

US dollar

The US dollar index fell by more than 0.1% on Wednesday, reflecting a decline in the US currency against a basket of global currencies, amid cautious conditions dominating foreign exchange trading.

Traders are paying close attention to the issue of Federal Reserve independence, following threats by the US Department of Justice to bring criminal charges against Chair Jerome Powell over alleged irregularities related to the central bank building renovation project.

In an unprecedented show of solidarity, global central bank officials issued a coordinated statement on Tuesday expressing full support for Powell and for protecting the independence of monetary decision-making in the United States.

These tensions come as markets await President Donald Trump’s announcement in the coming weeks of his nominee to succeed Powell, with Powell’s official term set to expire in May, increasing uncertainty across global financial markets.

US interest rates

• Core US consumer prices rose 0.2% month-on-month and 2.6% year-on-year in December, below analysts’ expectations of increases of 0.3% and 2.7%, respectively.

• US President Donald Trump welcomed the inflation figures and renewed his call for Federal Reserve Chair Jerome Powell to cut interest rates “meaningfully.”

• According to the CME FedWatch tool, the probability of keeping US interest rates unchanged at the January 2026 meeting is currently priced at 97%, while the probability of a 25-basis-point rate cut stands at 3%.

• Investors are currently pricing in two US rate cuts over the course of next year, while Federal Reserve projections point to a single 25-basis-point cut.

• To reprice these expectations, investors are later awaiting further key US data, including producer prices and retail sales for December.

Silver outlook

Brian Lan, managing director of Singapore-based trading firm GoldSilver Central, said that the next major round number for silver is $100, adding that large double-digit percentage gains for the metal look likely this year.