Silver ETFs Plunge Up to 3.6% as Fed Rate-Hike Fears Weigh on Precious Metals

Gold and silver exchange-traded funds (ETFs) took a hit on Monday, falling in tandem with precious metal prices due to inflation concerns and expectations of further US Federal Reserve interest-rate hikes.

Silver ETFs bore the brunt of the decline, dropping as much as 3.6 percent, while gold ETFs declined more than 2 percent.

The losses mirrored a sharp correction in international bullion markets, with spot gold falling 2.1 percent to $4,198.10 an ounce and US gold futures dropping 2.1 percent to $4,231.

Higher inflation expectations have increased concerns that the Fed may tighten monetary policy further, which would typically weigh on non-yielding assets like gold and silver by raising their opportunity cost.