Fed Expectations and Stronger Dollar Weigh on Silver Prices

Silver prices continue to decline due to a stronger US dollar and growing expectations of tighter Federal Reserve policy, trading near $57.20 per ounce on Tuesday.

The stronger dollar has reduced demand for non-yielding precious metals like silver, making them more expensive for international buyers.

The Fed's upcoming policy decision is expected to have a significant impact on the market, with investors assigning a 62% probability that policymakers will leave interest rates unchanged this week and a 38% chance of a 25-basis-point increase.

While industrial demand remains supportive for silver due to its use in electronics, renewable energy, electric vehicles, and advanced manufacturing, higher interest rates could keep pressure on the metal even if rates remain unchanged.