Silver plumbs year nadir, dollar rallies

Silver futures rose over one percent in American trade away from July 11, 2017 lows, as the dollar index climbed for the first time in three sessions, following earlier positive data from the US, while Federal Reserve Chair Jerome Powell wrapped up the first half of his Congressional testimony. 

As of 05:53 GMT, silver futures due on September 15 fell 1.21% to $15.62 an ounce from the opening of $15.81, marking year lows, while the dollar index powered up 0.53% to 95.01 from the opening of 94.51, rebounding from July 11 lows. 

US Industrial Data 

Earlier US data showed industrial production rose 0.6% in June, compared to a 0.5% dip in May, while analysts expected a 0.5% increase. 

The Capacity Utilization Rate rose to 78.0% in June from 77.7%, missing expectations of 78.4%. 

Powell Testifies 

Federal Reserve Chair Jerome Powell presented the first half of his Congressional testimony before the Senate Banking Committee, where he expressed his belief that the job market will remain strong, while asserting that stress tests are important tools in gauging the strength of banks, with the Fed seeking to make the tests more transparent.

Powell warned that trade tariffs could hurt the economy in the long term, while tax cuts and government spending will serve to support growth and jobs. 

Finally, Powell believes that gradual rate hikes are the only method of maintaining economic recovery, adding that the goal now for the Federal Reserve it to bring the monetary policy back to normal pre-crisis levels. 

Powell will present the second half before the House Financial Services Committee tomorrow, with investors looking for clues on future monetary policies and interest rate hikes this year.