Traders often steer toward safe-haven bets like silver during times of market volatility, but the recent rise in the U.S. dollar has discouraged many from buying the physical asset during the most recent bout of market swings.
“Silver prices are getting hit from two sides,” George Gero, managing director at RBC Capital Markets, told the WSJ. “Buyers and bargain hunters are looking for lower prices to re-enter the market. But not at these levels.”
Looking ahead, silver and other precious metals may continue to face an uphill struggle as the Federal Reserve is expected to keep hiking interest rates, which makes non-yielding assets like commodities less attractive.
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