Silver Prices Plummet to Six-Week Low Amid Strong Dollar and Rising Yields

Silver prices tumbled more than 3% to hit a six-week low on Monday, weighed down by a stronger US dollar and rising US Treasury yields ahead of an expected Federal Reserve interest rate hike this week.

The US Dollar Index rose 0.5% to a two-week high of 99.59 points, reflecting broader gains in the US currency against a basket of major and minor currencies.

Oil prices also surged more than 3% on Monday, approaching their highest levels in four months after a new Houthi attack targeted oil facilities in Saudi Arabia, renewing concerns over the security of global oil supplies.

The Federal Reserve begins its monetary policy meeting on Tuesday, with its decision due on Wednesday. Expectations strongly favor a 25-basis-point interest rate hike, which would be the first increase in US interest rates since July 2023.