Silver sheds 1% as US bonds rise

Silver prices lost nearly 1% on Tuesday, on track for the third daily loss in 4 days, alongside most dollar-denominated metals, as the US Treasury bond yields rose.

Silver prices fell 1.0% to $22.80 an ounce, after opening at $23.03, and hit a high at $23.10.

Silver prices rose 0.3% yesterday, posting the first gain in 3 days, in quite trading due to a public holiday in the US.

The dollar index rose by 0.2% today, extending gains for the third straight day against a basket of major currencies.

The greenback rose today following the US 10-year Treasury bond yield, which boost the dollar's investment attractiveness.

US 10-year treasury yields rose 2.1%, the third such gain in a row, marking a 2-year high at 1.856% while analysts expect it to reach 2% soon.

These developments in the bonds market came due to growing chances that the Federal Reserve will raise interest rates next March, in the first of three expected rate hikes this year, with the possibility of a fourth hike if inflation continues to rise.