Dollar Strengthens, Gold and Silver Prices Plummet Amid Fed Rate Hike Expectations

Gold and silver prices took a hit on Wednesday as the U.S. dollar strengthened to a two-month high, driven by expectations of a Federal Reserve rate hike.

The spot price of gold traded near $4,290.26 per ounce, down 1.57% on the day, while silver slipped to around $64.687 per ounce, falling 3.53% intraday.

Market analysts attribute the dollar's surge to the Fed's rate hike being viewed as part of a broader tightening cycle rather than a one-off policy move.

The yield on the 10-year Treasury remained steady at around 5.0%, while investors await several key economic releases, including the preliminary U.S. manufacturing PMI for September and durable goods orders for August.