Silver broke above $90 an ounce for the first time and gold rose as weaker-than-expected US inflation data supported the case for more rate cuts later in the year, while the geopolitical situation remained tense.

The white metal advanced as much as 3.6% to touch $90.0394 an ounce on Wednesday, while gold traded about $15 below an all-time peak. Underlying US inflation in December was not as high as feared, although economists said the data was artificially depressed by the record-long government shutdown late last year.

Precious metals have made a strong start to 2026, after blistering rallies last year, with the prospect of a criminal indictment against Federal Reserve Chair Jerome Powell reviving worries about the monetary authority’s independence. Central bankers across the world have rallied behind Powell and JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said the political intervention could backfire.

Haven demand has also been aided by US President Donald Trump’s capture of Venezuela’s leader, his renewed threats to take Greenland, and violent protests in Iran that could lead to a toppling of the Islamic regime there. Citigroup Inc. analysts upgraded their forecasts this week for gold and silver to $5,000 per ounce and $100 an ounce, respectively, in the next three months.

Silver outperformed gold last year, surging almost 150% thanks to a short squeeze in October and persistent supply tightness in London. Traders are waiting for the outcome of the US Section 232 investigation, which could lead to tariffs on silver. Concern over the potential levy has tied up metal in US warehouses, tightening global inventories.