Precious metals are facing significant downward pressure this month, with silver prices hitting an 11-month low. The decline comes amid ongoing tensions in the Middle East and growing expectations of further interest rate hikes by the US Federal Reserve. Rising bond yields have made non-yielding assets like gold and silver less attractive to investors, contributing to the sell-off.
Silver has been particularly hard hit, with weakening industrial demand adding to the downward pressure. The metal's industrial applications make it more sensitive to economic fluctuations compared to gold, which is primarily seen as a safe-haven asset.
The broader market uncertainty, fueled by geopolitical risks and monetary policy shifts, has created a challenging environment for precious metals. Analysts suggest that until there is clearer stability in either the Middle East or US interest rate policy, the downward trend may continue.