(Reuters) - Gold jumped to a record high on Wednesday while silver broke above $90 for the first time, as escalating tension in Iran and concern over the Federal Reserve's autonomy fuelled safe-haven demand, while softer inflation readings boosted rate cut bets.
Spot gold rose 1.1% to $4,636.78 per ounce by 1210 GMT, off a record high of $4,639.48 earlier in the session.
US gold futures for February delivery rose 1% to $4,643.90.
"Well-known haven characteristics amid heightened geopolitical risks, elevated fiscal uncertainty, and concerns about Fed independence," are driving prices higher, said Jamie Dutta, chief market analyst at Nemo.money.
Central bank chiefs from around the world lined up in support of Federal Reserve chair Jerome Powell on Tuesday, issuing an unprecedented statement of solidarity after the Trump administration threatened him with a criminal indictment, a move that could lower trust in U.S. assets such as the dollar.
Meanwhile, the US core Consumer Price Index rose 0.2% month-on-month and 2.6% year-on-year in December, the Bureau of Labor Statistics said on Tuesday.
President Donald Trump reiterated his push for Fed's Powell to cut interest rates "meaningfully".
Traders anticipate two interest rate cuts this year. Lower interest rates usually favour non-yielding bullion.
Spot silver jumped 4.8% to $91.11 per ounce, falling back from an earlier record high of $91.53. It has shot up nearly 27% in just 14 days this year.
ANZ forecasts gold prices to trade above $5,000 per ounce in the second half of 2026, with many other big brokerages expecting similar numbers on back of broader global uncertainty.
Spot platinum climbed 3.4% to $2,403.26 an ounce, after touching a one-week high earlier in the session. It hit a record $2,478.50/oz on December 29.
Palladium rose 0.1% to $1,841.80 an ounce.