Silver Price Slides to $16.78 After Strong Monday Trade

The silver price slid 1.1 percent on Tuesday and hit $16.78 an ounce, Reuters reported. The decline came on the back of a stronger US dollar and after metals performed well during Monday trading.

“Bulls are frustrated yet again to see rallies fade … momentum buying is mostly seen as an opportunity to sell into,” said Ross Norman, CEO of bullion broker Sharps Pixley.

Commodities prices continue to reflect investor anticipation of a Federal Reserve rate increase later this year. If the Fed raises rates, investors will move out of safe-haven commodities that do not pay interest.