Among investors, “the argument is shifting from whether or not there is going to be a rate rise to how gradual or extreme that tightening is going to be,” James Steel, a strategist at HSBC, told the WSJ. “If it appears the tightening will be modest, that gives gold a window to the upside.”

Nevertheless, rising rate expectations have taken a toll on precious metals. For instance, the silver and gold ETFs have declined over 10% so far this year.

ETFS Physical Palladium Shares

For more information on the precious metals market, visit our precious metals category.

Max Chen contributed to this article.