Gold and Silver Prices Rebound as Fed Rate Hike Drives Dollar Volatility

The US Federal Reserve's decision to raise interest rates by 25 basis points led to a sharp decline in gold and silver prices, but a rapid recovery followed as selling pressure eased and short positions were unwound.

Spot gold fell to approximately $4,234.68 per ounce on September 16, marking a near six-week low, while spot silver touched an intraday low of around $61.90 per ounce.

The US dollar strengthened at the same time, adding another layer of pressure on dollar-denominated bullion, with the dollar index reaching approximately 100.33, its highest level since the end of July.

However, the initial decline was followed by a rebound in gold and silver prices as geopolitical uncertainty and easing crude oil prices provided support.