Fed Hike Could Be the Catalyst Gold and Silver Need

Gold and silver prices have been declining due to the Federal Reserve's hawkish stance. However, experts believe that this may be an opportunity for investors, as the metals often bottom out before a Fed rate hike.

The recent correction in gold and silver has led to oversold technical conditions, with both metals sitting on 30% declines from their highs. Silver collapsed from over $120 to the $50s, while gold sold off hard into the Fed's decision to raise rates for the first time in nearly a decade in 2015.

In that instance, gold bottomed right as the Fed pulled the trigger, and the metal turned higher once the hike was in hand. Experts think September could be the 2026 version of that moment, where a rate hike by the Fed could help mark the low in both gold and silver.