Silver Slides to $16.93 on Anticipated Fed Rate Hikes

Wednesday saw spot silver dip 0.7 percent to trade at $16.79 an ounce, Reuters reported. The drop reflects widespread anticipation that the Federal Reserve will increase interest rates this year.

While investor concern about Greece’s fate in the Eurozone has encouraged investment in safe havens, the Fed’s actions are likely to control the price of silver for foreseeable future.

According to Bernard Dahdah, an analyst for Natixis SA (EPA:KN), precious metal prices will be tied to “interest rates in the U.S. and the hawkishness of some Fed officials.” An interest rate hike could boost investors’ appetite for risk.