Silver Slumps on Stronger Dollar and Fed Rate Uncertainty

Silver prices declined by about 2% to around $57 an ounce on Tuesday due to a stronger US dollar and investor uncertainty ahead of Wednesday's Federal Reserve policy decision.

The dollar remained near a four-week high as markets priced in more than a one-third chance of a rate hike, despite President Donald Trump's repeated calls for lower interest rates.

Investors assigned an unusually high level of probability to a rate increase, with roughly an 80% chance of a hike in September, reinforcing expectations that US borrowing costs could stay elevated.