Silver Price Slumps on Strong Dollar and Rate Expectations

The price of silver has fallen by 5.7% in a single day, settling at $61.03 per troy ounce on Monday's COMEX front-month contract.

This decline is largely attributed to a stronger US dollar and rising US Treasury yields, which have reduced the appeal of non-yielding assets like silver.

Market participants are now pricing in the possibility of further hikes from the Federal Reserve, following a 7.1% drop in silver since the central bank raised its benchmark rate two weeks ago.

A run-up in energy prices, triggered by US President Donald Trump's rejection of an Iranian proposal for talks over the Strait of Hormuz, has fueled speculation that central banks will stay disciplined on rates.