Silver Price Today: Positive US Housing Data Weighs on Silver

On Tuesday, the price of silver declined 1.5 percent to reach $17.38 an ounce, according to Reuters.

The drop came after news hit that US housing starts rose to their highest level in over seven years in April. The announcement reignited anticipation that the Federal Reserve will make an interest rate increase within the year. That positive sentiment was further buoyed by a report from the San Francisco Fed. It states that the US economy is in better shape than some estimates indicate.

If a rate hike occurs, it will diminish investor appetite for safe-haven commodities like silver, as they do not pay interest.