Silver prices dropped about 5% to $59 per ounce on Wednesday, their lowest level since December, amid broad-based weakness across the precious metals market. The decline was driven by a stronger US dollar and rising expectations that the Federal Reserve will maintain a hawkish policy stance, leading traders to increase bets on an interest-rate hike later this year. Markets now assign roughly a 68% probability of a Fed rate increase in September, up from 29% just a week earlier.
Additional selling pressure hit silver and other precious metals as a steep decline in US technology stocks prompted some investors to cut their bullion holdings to help offset losses elsewhere in their portfolios. Silver is now down about 13% year-to-date and stands nearly 47% below its record high reached in January, prior to the outbreak of the conflict with Iran.
