On Wednesday (January 14), during the Asian session, precious metals continued their strong performance: gold consolidated at high levels after reaching a record high the previous day, while silver broke the $90 per ounce mark, setting a new record. The market was primarily driven by themes of "slowing inflation—rate cut expectations—risk aversion."
Gold Hovers at High Levels: Soft CPI Strengthens Rate Cut Expectations
At the time of reporting, spot gold rose to about $4,623.55 per ounce, not far from the historical high of $4,634.33 reached on Tuesday; March gold futures also rose to around $4,627.10 per ounce.
One driving factor is the relatively mild U.S. inflation data: Core CPI rose approximately 0.2% month-over-month and 2.6% year-over-year, both below market expectations, making investor bets on rate cuts this year more solid (market pricing roughly points to about two rate cuts).
Silver Leads: Breaks $90 Mark, Platinum Also Strengthens
Silver significantly outperformed gold, rising about 3% during the session and reaching a historical high of approximately $90.04 per ounce. The report attributed its upward momentum to strong industrial demand combined with inflows of safe-haven funds.
Platinum similarly strengthened, rising about 4% to over $2,415, approaching its previous historical high range.
Geopolitical Tensions and "Central Bank Independence" Debate Intensify, Reinforcing Risk Aversion Logic
Beyond data, the tense situation in Iran is also seen as a key backdrop supporting gold prices. The report mentioned escalating anti-government protests in the region resulting in significant casualties, raising concerns about broader regional instability; meanwhile, Trump issued tougher warnings about issues related to Iran and mentioned the possibility of imposing tariffs on countries with business dealings with Iran.
Additionally, the discussion around the independence of the Federal Reserve has intensified—news of a criminal investigation into matters related to Powell by the Trump administration has also provided emotional support to safe-haven assets like gold.
Focus Points: Rate Expectations and "Secondary Fermentation" of Risk Events
Looking ahead, the market will focus on two lines: whether more U.S. data and Fed statements continue to strengthen the "rate cut path"; and whether Middle Eastern tensions and policy statements further disrupt risk appetite. During this high-level phase of precious metals, volatility may increase along with the density of news.
