Gold and Silver Rise Amid Fed Rate Hike Expectations

Gold and silver prices rose on Wednesday as investors waited for the Federal Reserve's rate decision later in the day. The Fed is expected to raise interest rates, with markets pricing in roughly 90% to 93% odds of a move.

The focus has shifted from the rate hike itself to Fed Chairman Kevin Warsh's comments at his press conference and the updated 'dot plot' showing officials' expectations for future rate moves. August retail sales data also showed a 1.2% increase, beating expectations of a 0.7% rise.

The drop in oil prices, which fell below $105.8 per barrel, has eased some inflation fears that had pushed gold to record highs. However, supply risks in the Gulf region continue to support higher prices due to ongoing tensions and attacks on Saudi oil infrastructure.