Gold Prices Rise as Oil Eases Ahead of Fed Rate Decision

The precious metals complex saw a surge in trading on Wednesday as oil prices eased and bond yields dipped slightly. The Federal Reserve's rate decision later in the day is the main event, with markets pricing in around 90% to 93% odds of a rate hike.

Gold traded at $4,352.18, up 1.3%, while silver rose 1.56% to $64.63. Traders are more focused on Fed Chairman Kevin Warsh's comments and the updated 'dot plot' showing officials' expectations for future rate moves than the rate hike itself.

The release of August retail sales data also made waves, with a 1.2% increase well above the expected 0.7%. The control group component of retail sales rose even more sharply, up 1.4%, marking the last major hard data releases before the Fed meeting.