Silver Price Plunges as Investors Await Inflation Data and Rate Hike Clues
The price of silver has dropped by 0.8% to $60.98 on Wednesday, putting it on track for a monthly decline. This comes as investors wait for US inflation data, which will give clues about the possibility of Federal Reserve rate hikes.
Silver is not alone in its losses, with platinum gaining 0.5% to reach $1,714.71 and palladium falling 0.2% to $1,220.98. All precious metals are set to register declines this month.
Gold, however, has bucked the trend, rising by 0.2% to $4,188.17 an ounce. US gold futures have also jumped 1% to $4,219.90, despite a stronger dollar making gold more expensive for holders of other currencies.
Gold's weakness is being driven by expectations of another rise in US interest rates, said Giovanni Staunovo, analyst at UBS. 'Higher oil prices and the increased probability of further US rate hikes being priced in by market participants are the main drivers behind gold's recent weakness.'