Silver Price Jumps Ahead of Expected Fed Rate Hike

The silver price (XAG/USD) surged to near $64.80 during European trading on Wednesday, up 1.8% from the previous day.

This increase comes ahead of the Federal Reserve's interest rate decision at 18:00 GMT, with traders increasingly confident that the Fed will hike rates by 25 basis points (bps) to 3.75%-4.00%, according to the CME FedWatch tool.

The US Consumer Price Index (CPI) report for August, released last week, showed sticky inflation, supporting expectations of a rate hike.

However, traders will be watching closely for commentary from Fed Chair Kevin Warsh at the press conference regarding inflation and the economic outlook, as well as any forward-guidance on interest rates.