Gold, Silver Prices Rebound as Geopolitical Uncertainty and Crude Oil Price Easing Offset Rate Hike Impact

The US Federal Reserve's decision to raise interest rates by 25 basis points on September 16 led to a sharp decline in gold and silver prices, but they rebounded strongly towards the end of the week.

Silver prices jumped 2.3% to $66.69 per ounce on Friday, while spot gold rose 0.7% to $4,372.27 per ounce for the same day.

The rate hike initially put pressure on precious metals as higher interest rates can increase the opportunity cost of holding them, but a stronger dollar also contributed to their decline.

However, the subsequent recovery in gold and silver prices was attributed to geopolitical uncertainty and easing crude oil prices, which provided counterbalancing support to the metals.