Despite crude oil surging 5% on the day and the U.S. dollar strengthening, gold and silver have held up impressively and are well off their lows. With the FOMC decision coming tomorrow, perhaps the market is looking for a rate hike accompanied by a more dovish tone. All eyes will be on the Fed.

Meanwhile, the 10-year Treasury yield broke above 5%, reaching its highest level in nearly two decades. The longer-term fundamentals for precious metals remain positive, but in the near term, a stronger USD, high crude prices, rising yields, and uncertainty over the path of U.S. interest rates continue to drive price action.

For now, patience remains important as we head into the FOMC decision and the remainder of the week.

Good luck to all tomorrow. What does everyone think the Fed will do—and, more importantly, how will gold and silver react?

For informational purposes only. Not investment advice.