Gold and Silver Rise as Fed Rate Hike Decision Looms

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

The precious metals have been sensitive to the Fed's actions, and traders are focusing on Fed Chairman Kevin Warsh's comments at his press conference this afternoon. The updated 'dot plot' showing officials' expectations for future rate moves is also expected to be closely watched.

Oil prices fell on Wednesday after a reported 7.1 million-barrel build in US crude oil inventories overnight, but supply risks in the Gulf continue to support prices more broadly. Yemen's Iran-backed Houthi rebels have been targeting Saudi oil infrastructure and global shipping, including missile attacks on vessels in the Strait of Hormuz.

Gold traded at $4,352.18, up 1.3%, while silver rose 1.56% to $64.63. The metals complex remains sensitive to Warsh's tone, with gold and silver potentially extending their recovery if the Fed presents the rate hike as a limited response to oil-driven inflation.