Explained: Why silver prices have crashed 14% this week to hit a 7-month low

Spot silver prices have crashed 14% this week, hitting a 7-month low of $56.41 per ounce, compared to an all-time high of $121 touched in January. The selloff is driven by growing expectations of US Federal Reserve rate hikes, easing US-Iran tensions which reduced safe-haven demand, and rising US bond yields making non-yielding assets like silver less attractive. Investors are now awaiting the US PCE inflation data due Thursday for further cues on the monetary policy outlook.