Gold and Silver Rise Ahead of Fed Rate Hike Decision
The prices of gold and silver rose on Wednesday ahead of the Federal Reserve's interest rate decision. Gold traded at $4,352.18, up 1.3%, while silver rose to $64.63, a gain of 1.56%. The Fed is widely expected to raise rates in today's meeting, with markets pricing in around 90% to 93% odds of that move.
Traders are more focused on the comments from Fed Chairman Kevin Warsh and the updated 'dot plot' showing officials' expectations for future rate moves. The release of August retail sales data also drew attention, which rose 1.2%, beating expectations of a 0.7% increase.
The recent drop in oil prices has eased some inflation fears that had driven gold to record highs. However, persistent geopolitical risks, particularly the ongoing supply disruptions in the Gulf, continue to support higher energy prices and keep investors wary.