Market sentiment remains firmly anchored to the bond selloff as the Federal Reserve begins its two-day policy meeting. While spot gold retreated 0.44%, silver managed a modest gain, rising 0.93% to $63.70. The primary focus for traders has shifted beyond the immediate rate decision toward the guidance provided by Chair Kevin Warsh. The market is looking for clarity on whether Wednesday's anticipated hike marks the beginning of a sustained tightening cycle or a singular move, a distinction that will dictate real-yield pressure through the final quarter of the year.

Geopolitical volatility, centered on the Strait of Hormuz and ongoing disruptions to Saudi energy infrastructure, continues to provide a floor for precious metals. However, the influence of these events is currently being eclipsed by macroeconomic headwinds. With Brent crude holding above $105 a barrel and WTI steadying above $100, inflationary expectations are forcing Treasury yields to levels not seen since 2007. This environment leaves bullion caught in a conflict between its role as a hedge against global instability and its sensitivity to the strengthening dollar and rising interest rates.