Metals Update: Gold Retraces from $4,600, Silver Hits Record Highs

Precious metals displayed significant divergence on Tuesday following the release of DecemberUS inflation data. Gold (XAU/USD) slipped below the psychological $4,600 level as the CPI print confirmed stable prices, paradoxically cooling demand for the yellow metal as an inflation hedge even as it cemented expectations for Federal Reserve rate cuts.

Market Movers

Meanwhile, Silver (XAG/USD) briefly surged to an all-time high of $89.11 before seeing a sharp rejection, trading back down to $86.91. The volatility suggests profit-taking is capping gains despite a generally supportive environment of softer global yields and geopolitical tension.

Market Outlook

The failure of Silver to hold the $89 handle may indicate exhaustion in the near-term bullish momentum, though the long-term trend remains supported by the broader “debasement” narrative driving hard assets.

Key Data Points

• Gold Support: XAU/USD traded below the psychological $4,600 level.
• Silver Record: XAG/USD hit an all-time high of $89.11 before pulling back.
• Macro Catalyst: US CPI data reinforced expectations for Federal Reserve rate cuts.