September 18, 2026
The Federal Reserve’s first interest rate hike in over three years was actually expected to hit non-interest-bearing precious metals hard—but the exact opposite is happening in the futures markets: Immediately after the rate decision, gold and silver surged strongly into positive territory, turning the feared rate trap into a dynamic relief rally. Spot gold climbed back above the $4,340-per-ounce mark with a daily gain of 1.8 percent, while silver surged to over $65 with a price jump of nearly 3.6 percent. Meanwhile, both precious metals are once again significantly extending their gains in European trading. What initially appears to be a paradoxical market reaction turns out to be a classic “sell the rumor, buy the fact” pattern, accompanied by falling Treasury yields and declining energy prices.
Falling yields and declining crude oil prices are easing interest rate pressure on the market
The trigger for the trend reversal is a noticeable easing of pressure on the periphery of the precious metals market. Although the Fed raised its benchmark interest rate by 25 basis points to a range of 3.75 to 4.00 percent and signaled at least one more rate hike, the bond markets reacted with relief: The yield on benchmark 10-year U.S. Treasury bonds promptly dropped from 5.01 percent to 4.93 percent. At the same time, the U.S. dollar lost momentum, as institutional investors largely view this year’s monetary policy rate hikes as already priced in.
The crude oil market is providing additional tailwind, temporarily easing inflationary pressures. Reports of additional Saudi Arabian oil shipments via Oman, as well as progress in repairing the East-West pipeline, pushed both North Sea Brent and WTI down toward $100 per barrel. This slight easing of energy prices temporarily deprives central bankers of the argument for even more aggressive rate hikes and, at the same time, lowers the real holding costs for physical precious metals.
Silver Breaks Through Key Level – Gold Faces a Major Test at $4,354
From a technical perspective, the counter-movement paints a significantly brighter picture but requires follow-through buying. For silver, the recapture of the $64.86 mark stands out. To definitively label the recent sell-off as a bear trap, the bulls must now break through the massive resistance zone between $65.73 and $66.99. Only a sustained breakout above $67 will open the path toward the multi-month high of $68.17, while on the downside, the support level at $63.44 safeguards the correction low.
For the gold price, the zone around $4,354 serves as an immediate crossroads. If a breakout succeeds here on a daily closing basis, the next milestones at $4,403 and $4,434 will quickly come into focus. If, on the other hand, the attempt fails due to the Fed’s current interest rate cap, the level around $4,283 will serve as primary support. For commodity investors, the environment remains divided: While the Fed’s hawkish rhetoric is capping excessive price euphoria, the combination of unresolved geopolitical tensions in the Middle East and falling bond yields is cementing a solid foundation beneath both precious metals.
Source：https://goldinvest.de/en/silver-and-gold-in-rally-mode-fed-rate-hike-fears-give-way-to-relief
