Investing.com - Silver futures tumbled to the lowest level since July 2010 on Monday, as growing expectations for higher U.S. interest rates and worries that China will not expand economic stimulus weighed.
On the Comex division of the New York Mercantile Exchange, silver for December delivery fell to a session low of $17.33 a troy ounce, a level not seen since July 28, 2010.
Prices recovered to last trade at $17.60 during European morning hours, down 24.1 cents, or 1.35%.
Silver prices lost 67.3 cents, or 3.63%, on Friday to settle at $17.84. Futures were likely to find support at $17.18, the low from June 7, 2010 and resistance at $18.59, the high from September 19.
Also on the Comex, gold for December delivery slumped to a daily low of $1,208.90 a troy ounce, the weakest since January 2, before trading at $1,214.60, down $2.00, or 0.16%.
The Federal Reserve cut its monthly bond-buying program by $10 billion following its two-day policy meeting on September 17, keeping the program on track to finish next month.
While the Fed reiterated that it expects rates to remain on hold for a "considerable time" after its quantitative easing program ends, it also projected a faster pace of rate hikes.
For the end of 2015, the median forecast was 1.375% compared to a June forecast of 1.125%.
The dollar traded near the highest level in more than six years against the yen, while the euro hovered close to 14-month lows, as markets interpreted the Fed's statement as hawkish.
Meanwhile, China’s Finance Minister Lou Jiwei reiterated that policymakers in Beijing will not make major policy adjustments in response to individual economic indicators.
The comments were made at a meeting of finance ministers and central bank governors from the G20 countries in Australia over the weekend, according to a statement from the People's Bank of China.
Lou’s remarks dampened speculation that China will increase stimulus to meet this year’s growth target of 7.5%.
Elsewhere in metals trading, copper for December delivery plunged 5.0 cents, or 1.61%, to trade at $3.042 a pound, the lowest since June 15.
China is the world's largest copper consumer, accounting for nearly 40% of global demand.