Dollar Surge Sends Silver Prices Plummeting

Silver prices plummeted by more than 3% to $65.05 per ounce, and the precious metal is not alone in its decline. Platinum lost 3.7% to $1,767.73, while palladium declined 3% to $1,268.84. The US dollar has reached new heights, putting pressure on gold as well. At 9:05 a.m. ET (1305 GMT), spot gold had dropped 1.1% to $4,304.89 per ounce.

The strong US dollar is making bullion more expensive for holders of other currencies. Boston Fed President Susan Collins and Richmond Fed President Tom Barkin have voiced support for last week's rise in interest rates as inflation concerns grow. Peter Grant, vice president and senior metals strategist at Zaner Metals, believes that bullion prices are being pressured by the higher dollar.

Some Fed officials have raised concerns about inflation, citing strong demand in the economy. The rise in interest rates can reduce the appeal of gold or silver as investors move toward interest-bearing assets. However, this could potentially lead to a rebound in bullion prices in the future.