Silver pulls back from 7-year high on profit-taking

Silver prices fell on Tuesday, to bounce off the 7-year peak hit earlier, and head for the first loss in 3 days on profit-taking, while the US dollar rebounded ahead of the Federal Reserve meeting.

Silver prices shed 9.2% to $22.28 an ounce, after opening at $24.54, after hitting the session-high and the highest since April 2013 at $26.19.

Silver gained 8.1% yesterday, and posted its second straight daily gain, thanks to the continued strong retail demand and a sharp drop in the US dollar.

Silver prices gained nearly 18% during the past week, posting the seventh weekly gain in a row, and the biggest gain in percentage ever, after retail investors focused on the precious metal, as it's currently still undervalued compared to gold.

The US dollar pulled up 0.5% today on track for the first profit in eight days away from two-year lows at 93.48. 

The dollar's recovery comes ahead of the Federal Reserve meeting, as the Fed is widely expected to confirm continuing it approach to stimulate the US economy to ease the coronavirus pandemic damages.