Silver Soars to Unprecedented Peak

Silber Preis XC0009653103

The price of silver has surged beyond the $90 per ounce threshold for the first time in history, continuing its record-breaking ascent. This rally has even seen the white metal outperform gold, fueled by a potent combination of weak U.S. inflation data, geopolitical instability, and a deepening structural supply shortage. Analysts at Citi now suggest the commodity could be poised for a sprint toward $100.

Key Developments:
* Silver achieves a historic milestone, surpassing $90 per ounce.
* The metal has gained 27% year-to-date, following an impressive 150% gain last year.
* Citi raises its near-term price target to $100.
* U.S. inflation figures bolster expectations for interest rate cuts.
* A structural market deficit continues to intensify.

A persistent structural deficit has characterized the silver market for years. Inventory levels in London remain tight, coinciding with robust industrial demand. The global transition to renewable energy is driving consumption from the solar sector, while advancements in artificial intelligence and electronics create additional demand. The United States has officially classified silver as a critical mineral.

This powerful convergence of strong investment interest and sustained industrial offtake is significantly amplifying upward price pressure. There is no clear indication that the supply tightness will ease in the foreseeable future.

In light of these conditions, strategists at Citi, led by Kenny Hu, have increased their short-term price target for silver to $100 per ounce. They cite heightened geopolitical risks, persistent market tightness, and concerns regarding Federal Reserve independence as key drivers. With the breach above $90, the psychologically significant $100 level now appears within reach.

Rate Cut Expectations Gather Momentum

Recent U.S. inflation data for December came in softer than anticipated. Core inflation registered at 2.6%, below analyst forecasts of 2.7%. Markets are now pricing in two interest rate cuts by the Federal Reserve, potentially beginning as early as June.

Falling interest rates traditionally provide a tailwind for precious metals, which offer no yield. This reduces the relative disadvantage compared to interest-bearing assets. While the Fed is expected to hold rates steady at its next meeting, shifting market expectations are creating a more favorable environment for both gold and silver.

Geopolitical Tensions Fuel Safe-Haven Demand

Multiple global flashpoints are driving investors toward traditional safe havens. Concerns over central bank independence were heightened by reports of potential criminal prosecution of Fed Chair Jerome Powell by the U.S. Department of Justice. JPMorgan CEO Jamie Dimon has previously warned that political interference could have negative consequences.

This environment is further complicated by renewed territorial statements from the Trump administration regarding Greenland, ongoing violent protests in Iran, and the announcement of 25% tariffs on nations trading with Iran. This complex mix of uncertainties is accelerating the flight into precious metals.