Silver Prices Plummet as Oil Costs Rise

Silver prices plummeted more than 4.6% on Monday to $61.32 per ounce, while gold reached its lowest in over seven weeks at $4,155.67 per ounce.

The higher oil prices have stoked inflation fears and led to the downfall of bullion prices, according to Giovanni Staunovo, analyst at UBS. He noted that '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.'

The US central bank has already raised interest rates by a quarter percentage point this month, and traders expect a 70.3% chance of another hike in October, as shown by CME's FedWatch Tool.