Fed Rate Hike Has Mixed Impact on Gold and Silver Prices

The Federal Reserve's decision to raise interest rates by 25 basis points has had a mixed impact on gold and silver prices. Spot gold is trading near $4,372.30 an ounce, while spot silver is near $65.477.

Lower crude oil prices and a modest pullback in Treasury yields have helped precious metals recover from the Fed's decision. The 10-year yield traded near 5.00%, and the dollar softened slightly.

The Fed raised the target range for the federal funds rate to 3.75% to 4.00%. Chair Kevin Warsh framed the move around still-elevated inflation, resilient domestic demand, and a labor market that has not deteriorated enough to force a pause.