Why are silver prices down today, and will it continue to reach dream levels again?

Silver prices fell more than 3% to $65.05 per ounce. Also, the platinum lost 3.7% to $1,767.73, and palladium declined 3% to $1,268.84. Gold is also witnessing a decline as Federal Reserve signals bolstered rate hike expectations and led the US dollar to new heights. At 9:05 a.m. ET (1305 GMT), spot gold had dropped 1.1% to $4,304.89 per ounce. US gold futures for December delivery were also down 0.8% at $4,341.90.

Why are silver prices down today?

The dollar, which is at a two-month high, is making greenback-priced bullion more expensive for holders of other currencies. Boston Fed President Susan Collins and Richmond Fed President Tom Barkin have voiced support for last week's rise in interest rates as inflation concerns grow.

Experts Speak

Peter Grant, vice president and senior metals strategist at Zaner Metals, told Reuters, that bullion prices are pressured by the higher dollar. "Post-FOMC Fed speak has been fairly hawkish. So the market is building in expectations of at least one more rate hike before the end of the year. And that's putting gold under pressure," added Grant.

Will silver continue to reach dream levels again?

The silver prices may rise in the future. Some Fed officials had also raised concerns about inflation. The officials feel the inflation is being driven by strong demand in the economy. The rise in interest rates can reduce the appeal of gold or silver as investors move toward interest-bearing assets. The bullion prices fall as oil prices rise and it is also brought down by fears of inflation and tighter monetary policy from central banks.