Silver Prices Surge as Investors Await Fed Decision on Interest Rates

Silver prices rose by 1.14% to around $57.80 during the Asian trading session on Wednesday, despite a sharp rebound in oil prices.

The white metal gained as investors continued to monitor developments in the Middle East, where renewed tensions between the US and Iran have pushed oil prices higher.

This has raised fresh concerns about the potential impact of energy costs on inflation expectations, which could prompt central banks to maintain interest rates at elevated levels or keep monetary policy tighter for longer.

The key catalyst for silver's price movement is the Federal Reserve's upcoming monetary policy announcement, scheduled for 18:00 GMT. According to the CME FedWatch tool, traders currently see a 69.5% probability that the Federal Reserve will leave interest rates unchanged at 3.50% to 3.75%.