Gold, Silver Prices Tied to Fed Decision Amid Hawkish Expectations

The Federal Reserve's upcoming policy decision is set to have a significant impact on gold and silver prices, as markets await the outcome.

According to the CME, there is a 70% probability that interest rates will remain unchanged, while nearly 30% of investors expect a 25-basis-point rate hike. Additionally, expectations suggest policymakers will maintain a hawkish tone due to persistent Middle East tensions and renewed inflation risks.

The US Dollar Index has been trading above the 101 level, strengthening the US dollar and weighing on major currency pairs. Gold and silver remain trapped near critical technical confluence zones as investors assess whether Treasury yields will continue rising or if the Federal Reserve could deliver a less hawkish message.