Silver holds above four-month lows ahead of US jobs data

Silver prices rose in European trade above four-month lows hit earlier this session, on track for the second profit in a row as dollar dips. 

Dollar declined ahead of US payrolls data for February, which will provide clues on the pace of the rate hike by the Fed in March.

Prices Today

Silver prices rose 0.4% to $20.15 an ounce, after marking November 4 lows at $19.88.

Prices rose 0.2% yesterday, the first profit in four days as the dollar dipped following unemployment claims data. 

The Dollar

The dollar index fell 0.2% on Friday, moving off three-month highs at 105.88 against a basket of major rivals. 

Dollar is declining after data showed unemployment claims rose by the largest amount in five months last week. 

Dollar was also pressured by lower US 10-year treasury yields, which plumbed three-week lows, reducing investments in the dollar. 

Fed Rates

Following the data, odds for a 0.5% rate hike in March rallied from 69% to 78%, while estimates for a 0.25% rate hike tumbled to 22%.

US Payrolls Data

Investors await important US monthly data for February, which will provide important clues on the state of the US labor sector and the health of the economy. 

US economy is expected to have added 224 thousand new jobs in February, slowing down from a 517 thousand addition in January.

Unemployment is expected at 3.4% with no change from the previous reading.