As the dollar rose, silver widened its decline and hit its lowest level in more than a year. Gold also gave up intraday gains.
A dollar index hit a 10-month high, making precious metals less attractive to investors in other currencies. Us bond yields have risen and the dollar has remained strong since the Fed hinted last week that it might soon scale back its stimulus measures.
"We continue to expect silver to underperform gold on a risk-adjusted basis, as normalization of industrial demand will further depress silver, and the impact of undervalued QE on capital flows is also bad for silver," Dow Securities analyst Bart Melek and others said in a report.
Spot silver tumbled 4.6 per cent to $21.42 an ounce, the lowest intraday level since July 2020. Silver is on track for its biggest monthly decline in a year, while gold is on track for its biggest monthly decline since June.
Both precious metals have been cracked down this year as more and more central banks begin to hint that they will scale back their stimulus measures.
Spot silver fell 4.1 per cent to $21.53 an ounce at 10:57 new York time. Gold fell 0.4 per cent after rising 0.7 per cent in intraday trading. Platinum fell and palladium rose. The Bloomberg dollar spot index rose 0.5%.