The iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR) surged earlier this year, but over the past quarter, the dominant silver exchange traded funds have each tumbled more than 14%.

Silver ETFs have recently been sliding as some market participants started pricing in a rate hike from the Federal Reserve later this year and its potential impact on precious metals.

Silver and other precious metals enjoyed safe-haven demand as the equities market plunged into a correction. The metal also maintained its momentum as the Federal Reserve lowered its interest rate outlook to only one or two hikes this year from a previously expected four rate hikes.

SEE MORE: Analysis – Silver ETFs Are Outshining Gold

Silver and other precious metals enjoyed safe-haven demand as the equities market plunged into a correction. The metal also maintained its momentum as the Federal Reserve lowered its interest rate outlook to only two hikes this year from a previously expected four rate hikes.

While it seems unlikely that the Fed will raise interest rates this month, any speculation regarding increased likelihood of rate hike later this year could pressure silver and other commodities in the near-term.

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