Silver Prices Plummet Amid US Dollar Strength and Rising Interest Rates

Silver prices took a hit on September 28, plummeting 2.15% to $62.904. This marks a 7-day decline of 4.56%. The market's downward trend is primarily driven by a strengthening U.S. dollar and rising Treasury yields.

The recent increase in interest rates, fueled by the Federal Reserve's hawkish stance, has made holding silver more expensive for investors. As an interest-free asset priced in U.S. dollars, silver becomes less attractive when real yields rise.

Tighter monetary conditions have also weighed on global manufacturing purchasing managers' indices and industrial sentiment, causing concerns about near-term demand for the metal.