Gold slips ahead of Fed decision as silver hits lowest close since November 2025

what happened

Front-month gold futures settled in New York at $4,036.00 a troy ounce, down 0.6%. Silver dropped 1.5% to $53.457 an ounce, its lowest close since November 26, 2025. Metals came under pressure as oil prices climbed on escalation worries in the Middle East, and investors are waiting for the Federal Reserve to signal its stance on interest rates.

Critical Metals CEO Tony Sage said in a note that the tone of the Fed statement may matter more than the decision itself, since markets are watching for hints about further hikes this year and in 2027. He added that dovish signals in the PCE inflation and GDP figures due later this week could support gold, while firm numbers could lift the dollar and weigh on the metal.

Separately, according to Market Talk, the Bank of Canada raised its policy rate by a quarter point, its first increase in more than three years. Analysts at several banks expect another move in December. In the UK, the Debt Management Office cut planned long-dated gilt sales for 2026-27, and 30-year yields fell to 5.691%, a five-week low.

why it matters

For gold, the main drivers remain the dollar and rate expectations. A tougher Fed message usually pushes yields higher and makes non-yielding metal less attractive, while softer signals tend to have the opposite effect. The Bank of Canada move adds to the broader picture of tightening policy in developed economies.

market impact

Gold and silver: rate expectations and a firmer dollar weigh on metals

• ↔Gold mixed — a hawkish Fed tone and firm data weigh, while dovish signals could support
• ▲Canadian dollar pressure up — the Bank of Canada's first rate hike and hawkish tone support the currency

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