Gold and Silver Rise Ahead of Fed Rate Decision

Gold and silver prices rose Wednesday as investors waited for the Federal Reserve's rate decision later in the day. The Fed is expected to raise rates, but traders are more interested in the comments of Chairman Kevin Warsh during his press conference this afternoon and the updated 'dot plot' showing officials' expectations for future rate moves.

The metals complex received some relief from falling oil prices and a small dip in bond yields. Gold traded at $4,352.18, up 1.3%, while silver rose 1.56% to $64.63. The retail sales data released earlier in the day showed a 1.2% increase in August, beating expectations of a 0.7% rise.

The recent attack on Saudi East-West oil pipeline and ongoing tensions in the Gulf region continue to support oil prices, despite the current pullback. This combination of cooling inflation pressure from lower oil prices alongside persistent geopolitical risk has left gold and silver higher heading into the Fed decision.