The US Dollar gained strength following the Federal Reserve's hawkish rate hike decision at its September 15-16 policy meeting, snapping a four-day losing streak against the Swiss Franc, FX Street reported. The USD/CHF pair edged higher as the greenback attracted renewed buying interest.
Meanwhile, precious metals faced pressure amid the stronger dollar. Silver declined nearly 3% to trade around $65, while gold slipped more than 1%. According to FX Street, the hawkish Fed outlook pushed the US Dollar to a two-month high, weighing on non-yielding metals like silver and gold.
Despite this, TD Securities’ Ryan McKay suggested gold may be entering a new bullish phase, supported by speculative, ETF, and central bank flows that bolster its resilience even amid further Fed hikes. For Japanese investors, these dynamics are crucial as shifts in the dollar and precious metals can influence domestic FX and commodity-linked portfolios.