Economy: Gold Near Record Highs, Silver Hits a Historic Peak

Gold prices moved closer to record levels after recent US inflation data shifted expectations toward interest rate cuts in 2026, while silver surged past the 90-dollar mark to reach an all-time high. Heightened geopolitical tensions and growing pressure on the US central bank have strengthened demand for safe-haven assets. Here is the latest picture in precious metals markets, along with updated outlooks.

Inflation signals reshape rate expectations

Precious metals gained momentum following inflation data from the United States indicating that price pressures remained relatively moderate last month. Analysts interpret this as a sign that the impact of higher tariffs on consumer prices is fading, reinforcing expectations that interest rate cuts could be implemented later in the year.

Market pricing suggests that policy rates are likely to remain unchanged in the near term, while expectations are building for at least two rate cuts during 2026. This outlook has continued to support gold and silver.

Latest developments in gold and silver prices

In spot markets, gold rose by around 1 percent to trade near 4,635 dollars per ounce. During early trading hours, gram gold was priced at 6,415 Turkish lira, while quarter gold changed hands at 10,488 lira.

Silver outperformed gold, climbing 4.6 percent to 91 dollars per ounce and breaking above the 90-dollar level for the first time on record. Since the start of the year, silver has gained nearly 28 percent. Gram silver was trading at around 125.4 lira.

Geopolitical risks fuel safe-haven demand

Rising geopolitical tensions have also played a significant role in boosting demand for safe-haven assets. Recent statements from US leadership regarding developments in Iran, combined with diplomatic efforts in the Gulf region to prevent further escalation, have increased uncertainty in global markets.

At the same time, growing political pressure on the US central bank has added to investor concerns, further strengthening demand for gold as a store of value.

Outlook for precious metals

In response to the current environment, major financial institutions have raised short-term price forecasts for both gold and silver, citing strong investor demand and supportive macroeconomic conditions.

Market strategists generally expect precious metals to remain attractive as hedges against inflation and financial instability, although gains may be more moderate than those seen last year. Silver, in particular, is viewed as having additional upside potential, with some forecasts pointing to significantly higher levels before the end of the year.

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