Silver closes lower as dollar and US bond yields rise

Silver prices fell on Wednesday, as the US dollar rallied against most major currencies lifted by the US Treasury bond yields rise following the US inflation data.

The US Department of the Treasury revealed today that the budget deficit reached $225.5 billion last month, to a total of $1.9 trillion during the first 7 months of the fiscal year.

Data showed that the US consumer price index rose 0.8% in April, beating forecasts of a rise by 0.2%, and the core reading for the same index (excluding energy and food prices) rose by 0.9% in April, higher than forecasts of 0.3%.

The US Treasury yields rose above 1.671% today, which weighs down on stocks and commodity currencies.

The dollar index rose against a basket of major currencies by 0.6% to 90.7 points as of 21:03 GMT, after hitting a high of 90.8 points and a low of 90.1 points.

Silver July futures fell 1.5% or 42 cents, and closed at $27.24 an ounce.