Gold, silver gain on September 16 ahead of Fed rate decision

Gold and silver prices advanced on Wednesday, September 16, supported by softer crude oil prices and defensive positioning ahead of the US Federal Reserve's policy rate announcement.

Spot gold rose 0.8% to $4,328.39 per troy ounce by 03:10 GMT, while US gold futures for December delivery slipped 0.9% to $4,369.50 per ounce. Concurrently, spot silver surged 1.5% to trade at $64.60 per ounce.

Market participants remain focused on the conclusion of the Federal Reserve's policy meeting later Wednesday, with financial markets pricing in an estimated 92% probability of a rate hike of at least 25 basis points.

Elevated interest rates traditionally dampen demand for non-yielding bullion. However, precious metals found counterbalancing support from sliding oil prices, which alleviated immediate inflation concerns, alongside lingering geopolitical tensions across the Middle East.

N.Tebrizli