Silver Prices Tumble on Federal Reserve Warning

Silver prices have taken a hit, falling almost 5% in just two days. The price correction has been predicted by analysts and is now prompting a 'buy-the-dip' call.

The silver price has fallen to $63.69 an ounce after an abrupt decline erased almost 5% from XAG/USD over 48 hours. Silver opened the period at $67.02 and briefly traded as high as $67.44 before sliding to $63.36.

The move was triggered by Kevin Warsh's hawkish Federal Reserve warning, which lifted rate-hike expectations and pressured precious metals. Spectra Markets had warned that silver was overbought and due a pullback, but did not recommend abandoning the trade.