Silver advances for first time in three days as dollar slips

Silver prices returned higher after two sessions of decline, as the dollar index gave up ground according to their inverse relation, and following earlier data from the world's largest economy, while Moody's agency downgraded China's credit ratings for the first time since 1989. 

As of 05:49 GMT, silver futures due on July 15 rose 0.34% to $17.18 an ounce from the opening of $17.12, while the dollar index fell 0.12% to 97.13 from the opening of 97.24. 

Earlier U.S. data showed unemployment claims rose less than expected last week, while the goods trade deficit widened unexpectedly in April, after the Federal Reserve released the minutes from the May 2-3 meeting, at which policymakers opted to hold interest rates at a range of 75% and 1%. 

Investors now await the second reading for US GDP growth for the first quarter, expected to show a 0.9% growth, up from 0.7% in the preliminary reading, the lowest in three years, which made the Fad delay increasing interest rates in the May meeting to make sure the slowdown was transitory and not structural.

Otherwise, Moody's downgraded China's ratings to A1 from Aa3 yesterday, citing some data that led to this step, which was described as strange and loaded with mistakes by some analysts, especially after the ratings agency upgraded its overall forecasts for China to "stable" from "negative", sparking question about the reasons for the ratings downgrade.