Gold and silver started the day lower. Investors are pulling back, getting ready for what might be the biggest market event this month.
Gold dropped more than 1.2%, down to $4,027. Just yesterday, it started the session at $4,116. The Silver price took a bigger hit, falling almost 2% to $57.337, after being near $60 the day before.
Everyone’s watching the Federal Reserve. Their policy decision is coming, and Chair Kevin Warsh will speak after. What he says could set the tone for interest rates through the rest of the year.
On top of that, the dollar is stronger. Treasury yields are up too. When those rise, precious metals lose some of their shine. So gold and silver are feeling that double squeeze right now.
What you'll learn 👉
Gold Price Falls as Markets Brace for the Fed
The Fed meeting is spooking everyone. That’s the main reason prices are down today. Nobody thinks the Fed will raise rates this time. But the real question is what happens after. And that’s where things get fuzzy.
Just two weeks ago, the chance of a rate hike down the road was around 10%. Now? It’s up near 36% to 40%. That jump has people nervous. So they’re selling first and asking questions later.
🚨 THE FED HASN'T BEEN THIS UNPREDICTABLE IN YEARS.
— Bull Theory (@BullTheoryio) July 28, 2026
Right now, there's roughly a 36% chance the Fed hikes rates tomorrow. The rest is priced for a hold.
But how we got here?
Oil first crossed $100 a barrel earlier this year as the US-Iran war escalated.
Then negotiations… pic.twitter.com/Yl6RDAAkFA
Investors are paying even closer attention to the Fed’s updated economic projections and dot plot. If policymakers forecast more rate increases through the end of the year, Treasury yields could climb further and strengthen the US dollar.
That matters because gold does not generate interest income. Higher yields increase the appeal of interest-bearing assets, reducing demand for bullion.
The US Dollar Index is also trading close to its highest level in nearly a month. Since gold is priced in dollars, a stronger greenback makes the metal more expensive for overseas buyers, adding pressure on the gold price.
Silver Price Drops Alongside Gold
Silver’s falling right along with gold. Same story, different metal.
Interest rates are the key here. When borrowing gets more expensive, factories pull back. That means less need for silver in things like electronics, solar panels, and all the other stuff it goes into. So the price takes a hit.
Oil prices have also become a major factor. Earlier this year, Brent crude climbed above $100 per barrel as conflict between the US and Iran intensified, increasing inflation concerns and lifting expectations for tighter monetary policy.
The picture has changed over the past few days. Brent has fallen more than 15% to around $86, with WTI easing to roughly $81 after the US paused military operations against Iran and President Trump confirmed that talks with Iran had resumed.
Even with oil falling, investors are waiting to see whether the Fed believes inflation risks have eased enough to avoid additional rate increases.
Related Gold News: Gold Price Prediction as China’s Gold Imports Hit a 2-Year High
China Keeps Buying Gold Despite Today’s Decline
Short-term selling has not changed the broader demand picture.
China has continued adding to its gold reserves for 20 consecutive months, with estimates putting total holdings near 25,000 metric tonnes, including undisclosed reserves. Analysts also estimate gold now represents close to 15% of China’s official foreign exchange reserves.
🇨🇳 CHINA HAS DRAINED ¥890 BILLION LIQUIDITY FROM U.S. TREASURIES HOLDINGS
— Stern Drew (@SternDrewCrypto) July 28, 2026
While China is on a selling spree of U.S. Treasuries, it is doubling down on its gold holdings and now expected to hold around 25,000 metric tonnes in reserves undisclosed.
China has been on a… https://t.co/S9MfwxPHPu pic.twitter.com/HvmlHg7Oja
Also, the 10-year US Treasury yield has climbed to 4.707%, increasing competition for investor capital.
These longer-term trends support demand for precious metals, but today’s trading is being driven by expectations surrounding the Federal Reserve.
What Comes Next for the Gold Price and Silver Price?
The next move for the gold price and silver price will depend largely on the Fed’s message.
If Chair Kevin Warsh indicates that inflation is cooling and policymakers expect fewer rate increases, the US dollar could ease, giving both metals room to recover.
If the Fed delivers a more hawkish outlook or raises its forecasts for future rate hikes, Treasury yields could move higher again, keeping pressure on both the gold price and the silver price over the coming sessions.
With US GDP data and the Fed’s preferred inflation gauge also due later this week, volatility in precious metals is unlikely to fade anytime soon.
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