Precious metals are currently driven primarily by interest rate expectations, a stronger U.S. dollar, and elevated energy prices rather than traditional safe-haven demand. 

As the Federal Reserve begins its two-day meeting—with markets heavily anticipating a 25-basis-point rate hike, gold prices declined slightly to around $4,279 per ounce, while silver held modest gains near $63.70.

Driving this pressure are multiyear highs in U.S. Treasury yields (with the 10-year yield hovering around 5%) and an ongoing oil shock, fueled by geopolitical tensions in the Middle East that have kept Brent crude above $105 a barrel. 

Investors are paying close attention to whether Fed leadership signals an extended tightening cycle or a single, “one-and-done” rate hike. Meanwhile, global equities and risk appetite are under pressure due to the broader bond selloff and inflation concerns.