Silver Prices Plummet Over 3% as Dollar Hits Two-Month High

Silver prices took a significant hit on Thursday, plummeting more than 3% to $65.05 per ounce. This decline was part of a broader trend in precious metals, with platinum falling 3.7% to $1,767.73 and palladium declining 3% to $1,268.84.

The sharp drop in silver prices can be attributed to the strengthening US dollar, which has reached a two-month high. This makes greenback-priced bullion more expensive for holders of other currencies. Boston Fed President Susan Collins and Richmond Fed President Tom Barkin have expressed support for last week's interest rate hike, citing growing inflation concerns.

Peter Grant, vice president and senior metals strategist at Zaner Metals, noted that the higher dollar is putting pressure on bullion prices. 'Post-FOMC Fed speak has been fairly hawkish,' he said, adding that the market is building in expectations of at least one more rate hike before the end of the year.