From Yahoo Finance · · 1m 30s
Silver surges ahead of Fed rate decision
Silver prices climb as markets brace for the Fed's first rate hike in three years.
In brief
Silver prices climb as markets brace for the Fed's first rate hike in three years. Silver rose to $65.08 per ounce on anticipation of a Fed rate increase, though higher rates typically pressure precious metals that don't pay interest. Originally reported by Yahoo Finance.
Silver climbs before Fed decision
Silver December futures opened at $64.18 per ounce on September 16, 2026, up 0.5% from Tuesday. Prices reached $65.08 by early morning as markets await the Fed's anticipated rate decision.
“Silver prices rose this morning, reaching $65.08 as of 6:42 a.m. ET.”
Market expects first rate hike in 3 years
The CME Group's FedWatch tool shows a 92.5% probability the Fed will raise the fed funds rate by 25 basis points. This would be the first increase in three years.
“there is still a 92.5% chance the Fed will raise the target range for the fed funds rate by 25 basis points”
Higher rates pressure precious metals
Rising interest rates create headwinds for silver and crypto because these assets don't pay interest, making bonds and savings accounts more attractive to investors.
“Higher interest rates are a headwind for precious metals and crypto prices since these investments do not pay interest.”
Silver up 51% year over year
Silver has gained 51.1% over the past year, though it's down 3.2% from one week ago and down 1.2% from one month ago. Year-to-date gains exceeded 100%.
“One year ago: +51.1%”
Silver has more industrial uses
Unlike gold, which serves mainly as a store of value, silver is heavily used in manufacturing. Companies use it for solar panels, electronics, and medical devices, making industrial demand a key price driver.
“Silver plays a significant role in manufacturing and industrial production”
Gold outperformed over 50 years
Over the past five decades, gold delivered higher long-term returns than silver. Central banks hold gold reserves to protect against inflation and crises, while silver's abundance and industrial uses create more price volatility.
“Over the past 50 years, gold outperformed silver, delivering higher long-term returns.”
The takeaway
Silver rose to $65.08 per ounce on anticipation of a Fed rate increase, though higher rates typically pressure precious metals that don't pay interest.
