Gold and Silver Rebounds Ahead of Fed (09.16.2026)

Investors turned their attention to a packed central bank calendar as the Federal Reserve prepared for a widely expected 25-basis-point rate hike. 

The euro weakened toward 1.15 and sterling fell below 1.35 as persistent dollar demand and elevated oil prices kept inflation concerns in focus. Gold recovered above $4,300 and silver extended its rebound beyond $64 as Treasury yields and crude prices eased from recent highs. Meanwhile, the yen slipped past 155 despite strong expectations for a Bank of Japan rate hike later this week.

Euro Weakens Toward $1.15

The Euro dropped toward $1.15, reaching its lowest level since mid-August, as a resilient U.S. Dollar pressured major currencies ahead of an anticipated Federal Reserve rate increase. Persistent Gulf conflict has kept crude oil well above $100 per barrel, fueling inflation concerns and triggering sell-offs in long-dated sovereign debt. Following the European Central Bank's recent rate hike, focus now shifts to key central bank decisions, including the Federal Reserve, Bank of England, and Bank of Japan.

The first resistance is positioned at 1.1560 while the support starts from 1.1530.

Gold Rebounds Above $4,300

Gold reclaimed $4,300 an ounce on Wednesday, halting a two-day decline as rallies in crude oil and Treasury yields cooled before the Federal Reserve's policy announcement. Crude eased from multi-month highs following an unexpected U.S. inventory build, though Middle East supply concerns limited losses. Investors remain focused on central bank decisions, with the Fed widely anticipated to deliver a 25 basis point rate increase, while the Bank of Japan eyes a hike and the Bank of England prepares to hold rates steady.

First resistance is seen at $4350, with initial support near $4260.

Yen Falls Past 155 Mark

The Japanese Yen weakened past 155 per dollar on Wednesday, dropping for a third consecutive session as a firmer Dollar and rising oil import costs pressured the currency. Despite the slide, losses were capped by expectations of impending Bank of Japan rate increases, backed by strong August export data driven by AI chip demand. Markets price an 80% probability of a BoJ hike this Friday, with another move expected by January.

First resistance is seen at 156.00, with initial support near 153.80.

GBP/USD Drops Below $1.35

The British Pound fell below $1.35, touching its lowest level since early August. Stronger U.S. Dollar demand ahead of an expected Federal Reserve rate hike pressured the currency, while the Bank of England is anticipated to maintain rates at 3.75% on Thursday. Although recent data highlighted the UK's fastest economic expansion in 18 months, surging oil prices amid Middle East conflict complicate the inflation outlook, keeping market expectations aligned for a potential November rate increase.

From a technical view, resistance stands near 1.3530, with support around 1.3450.

Silver Extends Rally Past $64

Silver advanced above $64 an ounce on Wednesday, gaining for a second consecutive session as momentum in oil prices and bond yields cooled ahead of key central bank decisions. Crude pulled back from multi-month highs following an unexpected U.S. inventory surplus, though ongoing Middle East disruptions limited downside. Meanwhile, global bond yields stabilized with markets fully pricing a 25 basis point Federal Reserve rate hike to curb inflation, while anticipating tightening from the Bank of Japan and a hold from the Bank of England.

From a technical view, resistance stands near $64.80, while support is located around $62,70.