Silver Price Sinks on Interest Rate Hike Speculation

iNVEZZ.com reported that the silver price was in negative territory for the third day in a row during Asian trading Thursday. Investors are antsy due to increased speculation that a US interest rate hike remains a possibility in June.

As quoted in the market news:

Silver for immediate delivery had shed about 1.5 percent of its value, or 25 cents, to $16.25 per troy ounce as of 07:07 BST, and was trading about 1.6 percent below its 50-day simple moving average of $16.52, having closed below the measure during the previous session for the first time since the turn of the month.

Yesterday, the precious metal closed at $16.50, down 30 cents on the day, following the release of minutes from the March 17-18 meeting of the Federal Open Market Committee (FOMC), which were interpreted by some market participants as hawkish. The release indicated that members of the Fed’s policy board are becoming increasingly divided on the timing of the first raise in interest rates since 2006, with the current market consensus being that the first hike would happen sometime in the second half of this year.

Click here to read the full iNVEZZ.com report.