Silver prices rose in European trade for the third straight session to seven-week highs after surpassing $23 an ounce once more on strong demand on safe havens as Deutsche Bank's troubles spook the markets. 

The white metal is on track for the second weekly profit in row on prospects of the end of the US policy tightening cycle. 

Prices Today

Silver prices rose 1.1% to $23.32 an ounce, the highest since February 2, with a session-low at $22.95, after rising 0.5% yesterday alongside most precious metals. 

Global Banking Sector 

The cost of insuring Detusche Bank's debts surged to record highs, sending the stock down 15% to five-month lows. 

US Treasury Secretary Janet Yellen asserted the government is ready to enact m ore measures to protect bank deposits if needed. 

Such developments spooked the markets once more about the banking sector after a short lull and UBS's acquisition of Credit Suisse. 

Weekly Trades

Silver is up 3.25% so far this week, on track for the second weekly profit in a row amid high demand on safe havens. 

The Fed 

The Federal Reserve raised interest rates by 25 basis points to 5%, the highest since mid 2007.

The Fed removed the phrasing about the need for continuous hikes in interest rates, preferring to use the phrase of "some more tightening"  could be appropriate. 

The Fed also maintained neutral interest rates outlook at 5.25% for 2023, paving the way for one more rate hike  this year. 

US Rates

Pricing for a 0.25% rate hike by the Fed at the May meeting stands at 23%, down from 70%.

Euro extended its losses in European trade against dollar off seven-week highs, on active profit-taking and amid renewed banking concerns while investors shun risks. 

European banking stocks extended their losses, led by Deutsche Bank with credit rating for Europe's banking sector downgraded.

The dollar continues to recover from seven-week lows on alternative investment demand, after US Treasury Secretary Janet Yellen sounded her concerns about the strength of the US banking sector. 

EUR/USD fell 0.6% to 1.0768, with a session-high at 1.0838, after losing 0.25% yesterday, the first loss in six days away from seven-week highs at 1.0930.

Deutsche Bank

Deutsche Bank's stock tumbled 5% today, following a 3.2% loss on Thursday, leading the banking sector down today.

CitiGroup recently cut down the credit rating for European banks to neutral from overweight, pointing to the impact of the European Central Bank's policy tightening.

The Dollar

The dollar index rose 0.4% on Friday away from seven-week lows at 101.92 against a basket of major rivals. 

Dollar is boosted by haven demand amid ongoing concerns about the banking sector, with Janet Yellen asserting the emergency measures taken to support the Silicon Valley Bank and others could be used again if needed. 

US stock indices rose on Thursday after the release of positive US data while markets assess the Fed's policy decisions.

The Fed

The Fed announced a 0.25% hike in interest rates to below 5%.

It's the ninth rate hike in a row since the starting the current cycle of policy tightening in March 202

The Federal Reserve asserted the US banking system remains strong and sound, and that recent developments will likely lead to stricter crediting criteria for individuals and corporations, which might impact growth and inflation.

The Federal Open Market Committee will continue to monitor data and the impact of the monetary policy, with the aim of bringing inflation back to the 2% target.

The Fed cut its growth forecasts for the this year and the next, while expecting one more rate hike this year.

The Fed expects the US GDP to grow by 0.4% this year, down from 0.5% in previous forecasts, while cutting 2024 growth forecasts from 1.6% to 1.2%, but raised 2025 forecasts from 1.8% to 1.9%.

The Fed also cut unemployment forecasts for this year from 4.6% to 4.5%, but maintained 2024 forecast at 4.6%.

And finally, the Fed held its forecasts for interest rates this year at 5.1%, pointing to one more rate hike this year.

Powell

Fed Chair Jerome Powell said the Fed will do whats "necessary" to bring inflation back to 2%, with another rate hike if needed.

Powell said US growth was impacted by higher interest rates, while the labor sector remains strong, and unemployment low.

He asserted the Fed is working with the US Treasury Department to scan the banking system and guarantee its strength and protect deposits.

And finally he said that it's unlikely for the Fed to cut interest rates this year, and a rate increase is possible.

Otherwise, earlier data showed US unemployment claims fell to 191 thousand in the week ending March 18, below estimates of 198 thousand, and down from 192 thousand in the previous reading. 

On trading, Dow Jones rose 1.3%, or 435 points as of 15:18 GMT to 32,465, while S&P 500 climbed 1.6%, or 64 points to 4,001, as NASDAQ added 2.3%, or 265 points to 11,934.

Copper prices rose on Thursday as the dollar fell against most  major rivals, with the metal extending its recent streak of gains while markets assess the economic impact of the Federal Reserve's recent rate hike. 

Copper futures due in three months at the London Exchange fell 0.2% to $8,874.

The Federal Open Market Committee hiked interest rates by another 0.25% on Wednesday as expected. 

Fed Chair Jerome Powell warned that the banking troubles could lead to a crediting crisis with a large impact on the US economy.

The dollar fell on Thursday, boosting dollar-denominated metals futures. 

Copper May futures at the Shanghai exchange rose 0.5% to $9,982 a tone. 

Copper demand is improving in China as seasonal demand rebounds while the economy overall improves. 

The ICSG organization estimates the refined copper market to have been in a surplus of 103 thousand tones in January, compared to a surplus of 10 thousand tones in February.

The dollar index fell 0.1% to 102.2, with a session-high at 102.5, and a low at 101.9.

Copper futures due in May rose 1.7% as of 14:57 GMT to $4.11 a pound.