Gold and Silver Prices Plummet as Fed Rate Hike Looms

The price of gold and silver has taken a hit in recent days due to rising oil prices and increased expectations of a Federal Reserve rate hike. The gold price fell to $4,397.50 on Thursday, down about 1.5%, while the silver price dropped to $64.86, losing nearly 6%. The decline came as Brent crude climbed to $105.07 amid growing tensions between the US and Iran.

The latest chart data shows that gold is trading around $4,348.90 after falling from the $4,700 area. The decline broke below the $4,500 region and pushed price toward the $4,300 support zone. According to analysts, gold needs to hold above $4,300 and break above $4,400 before $4,500 becomes a realistic target.

The silver price is around $64.50 on the latest chart, after falling from the $68-$69 region and touching roughly $63. The first test for silver is $67, with momentum starting to improve from depressed levels. A break above $67 could send the silver price toward $69 and then $70.

The Federal Reserve's two-day FOMC meeting runs September 15-16, with the policy decision scheduled for 2:00 p.m. ET on Wednesday. The rate decision has become more important after August inflation data showed that producer prices increased 0.4% in August. A rate hike could pressure gold and silver through higher yields and a stronger dollar.