# Silver surges ahead of Fed rate decision

> Silver prices climb as markets brace for the Fed's first rate hike in three years.
- Title: Silver surges ahead of Fed rate decision · Yahoo Finance
- Summary: 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…
- Keywords: silver prices, federal reserve, interest rates, precious metals, fed funds rate, commodity markets, investment, rate hike, fed meeting, trading, business, finance
- Source: Yahoo Finance — https://finance.yahoo.com/personal-finance/investing/article/silver-price-today-wednesday-september-16-2026-silver-prices-rise-in-anticipation-of-the-fed-105134969.html
- Published: 2026-09-16T10:51:34+00:00
- Read time: 1 min
- Topics: silver prices, federal reserve, interest rates, precious metals, fed funds rate, commodity markets, investment, rate hike, fed meeting, trading, business, 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.
## Key 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.