Silver backs off 2-week high despite China's rate cut

Silver prices fell on Monday, deepening losses for the second straight day, and pulled back from a 2-week high on profit-taking, despite China's decision to cut interest rates.

Silver prices fell 0.4% to $22.27, after opening at $22.36, and hit a day high at $22.44.

Silver closed lower by 0.5% on Friday, due to profit-taking from a 2-week high of $22.67 an ounce.

Silver prices gained 0.8% last week, the first weekly gain in 5 weeks, due to strong demand as a safe haven.

Most precious metals prices fell on Monday weighed down growing odds of a US interest rate hike next March, especially after recent Federal Reserve officials' statements.

The People’s Bank of China unexpectedly cut interest rates on Monday by 5 basis points to 3.8%, to support the economy that is facing severe conditions, which may lead to the worst growth rate in a long time.

Stimulating the Chinese economy lifts demand for metals and commodities, as China is the world's largest consumer of metals.