Gold and Silver Prices Rise Amid Middle East Tensions and Global Interest Rate Hikes

Gold prices rose on September 18 as market participants remained focused on developments in the Middle East and global monetary policy. The dollar index, which measures the US currency's performance against a basket of six major currencies, edged up 0.1% to 100.37.

Despite the Federal Reserve's rate hike, Goldman Sachs maintained its gold price forecast at $5,400 by end-2027. The bank noted that tighter monetary policy could slow gold's gains but would not halt them.

The Bank of Japan raised interest rates to their highest level in 31 years, signaling a readiness to continue increasing borrowing costs. Meanwhile, the Bank of England left interest rates unchanged on September 17 but warned that a rate hike may be needed.