Silver prices on Monday are showing a sharp decline amid a strengthening U.S. dollar and a general deterioration in sentiment in the precious metals market. As of 9:25 a.m., silver futures on Comex fell 10.5% to $62.345 per ounce.
The rise in the DXY dollar index is weighing on prices, as are expectations that the U.S. Federal Reserve may maintain a tight monetary policy for longer than the market had previously anticipated. An additional factor is demand for the dollar as a safe-haven asset amid the ongoing conflict in the Middle East.
Like other precious metals, silver becomes less attractive to investors when the dollar is strong, especially as yields on dollar-denominated instruments rise.
Silver is important not only as an investment and monetary metal but also as an industrial raw material. It is widely used in solar energy, electronics, electrical engineering, medicine, and battery production, so its market depends on both financial and industrial factors.
Reference: The Experts Club analytical center previously released a video analysis of the twenty largest silver-producing countries and their competition for leadership from 1971 to 2024 – https://www.youtube.com/shorts/HvKK-YET8vs
