Silver prices rose in European trade above three-month lows plumbed earlier in Asian trade with the white metal heading for the largest weekly loss this year.

Such losses came amid growing pressure from the stronger dollar and bleak outlook for global demand on industrial metals as central banks continue to aggressively raise interest rates. 

Silver Prices Today

Silver prices rose 0.6% to $22.39 an ounce, after marking March 17 lows at $22.11, while tumbling 1.8% on Thursday, the fourth loss in a row. 

Weekly Trading

Silver prices are down 7.5% so far this week on track for the second weekly loss in a row and the largest since October 2022.

The Dollar

The dollar index rose 0.7% on Friday for another session, hitting one-week high at 103.09 against a basket of major rivals.

Dollar was boosted by bullish remarks by Jerome Powell, while a spate of weak European data hurt chances of extended policy tightening by the European Central Bank this year.

Fed Chair Jerome Powell said at his Congressional testimony that more interest rate hikes could be undertaken in the future to rein in inflation.

In his testimony ahead of Congress, Fed Chair said the decision to hold interest rates unchanged last week was likely a transient lull and not a sign of ending the cycle.

Powell said in his prepared notes that all participants in the Federal Open Market Committee believe it'll be appropriate to raise interest rates again this year.

He noted that inflation has calmed down but remains much higher than the 2% target.

Global Rates

Swiss National Bank raised interest rates by 25 basis points at the June 22 meeting to 1.75%, the highest since before the financial crisis in 2008.

Bank of England surprised markets with a 0.5% rate hike at the June 22 meeting to 5%, the highest since 2008, and surpassing expectations of a 0.25% rate hike.

The European Central Bank already raised interest rates by 25 basis points last week to 4%.

Higher interest rates weigh negatively on silver futures and hurt their appeal.

Gold prices fell in European trade for the fifth straight session, plumbing  three-week lows and almost marking the second weekly loss in a row as the dollar powered up against major rivals.

Such gains after a batch of bullish remarks by Fed Chair Jerome Powell in his testimony ahead of Congress, which boosted the case for a resumption of policy tightening by the Fed.

Gold Prices Today

Gold prices fell 0.2% to $1,910 an ounce, the lowest since May 16, with a session-high at $1,918, after losing 1% on Thursday, the fourth loss in a row, as the dollar rebounded while US treasury yields muscled up.

Weekly Trading,

Gold prices are down 2.4% so far this week, on track for the second weekly loss and the largest since January.

Such hefty weekly losses came as demand tumbled on gold due to a stronger dollar and higher global interest rates. 

The Dollar 

The dollar index rose 0.7% on Friday for another session, hitting one-week high at 103.09 against a basket of major rivals. 

Dollar was boosted by bullish remarks by Jerome Powell, while a spate of weak European data hurt chances of extended policy tightening by the European Central Bank this year. 

Powell's Remarks Ahead of House of Representatives 

Fed Chair Jerome Powell said at his Congressional testimony that more interest rate hikes could be undertaken in the future to rein in inflation.

In his testimony ahead of Congress, Fed Chair said the decision to hold interest rates unchanged last week was likely a transient lull and not a sign of ending the cycle.

Powell said in his prepared notes that all participants in the Federal Open Market Committee believe it'll be appropriate to raise interest rates again this year.

He noted that inflation has calmed down but remains much higher than the 2% target.

Powell's Remarks ahead of Senate 

Powell said in his second part of the testimony that policymakers favour extending interest rates hikes for one or two more times this year.

He noted that inflation is impacting working families in particular, and thus must be brought down to 2% permanently, with most Fed policymakers believe the goal to be near. 

Odds for a 0.25% Fed rate hike at the July 26 meeting stand rose to 77% following the recent remarks. 

‏ ‏Fed Remarks 

Fed member Christopher Waller said the bank remains focused on achieving its aims, which requires more rate hikes.

Even as the Fed maintained interest rates unchanged last week, Waller believes there are still two more rate hikes in the near future this year to control inflation.

Global Rates

Swiss National Bank raised interest rates by 25 basis points at the June 22 meeting to 1.75%, the highest since before the financial crisis in 2008.

Bank of England surprised markets with a 0.5% rate hike at the June 22 meeting to 5%, the highest since 2008, and surpassing expectations of a 0.25% rate hike.

The European Central Bank already raised interest rates by 25 basis points last week to 4%.

Higher interest rates weigh negatively on gold futures and hurt their appeal.

The SPDR 

Gold holdings at the SPDR Gold Trust fell 2.6 tones yesterday to a total of 929.7 tones, the lowest since June 14. 

Sterling declined against most major rivals on Thursday following Bank of England's policy decisions.

Bank of England surprised markets with a 0.5% rate hike at the June 22 meeting to 5%, the highest since 2008, and surpassing expectations of a 0.25% rate hike.

Recent UK data showed consumer prices rose 8.7% in May, same as April.

The BoE opened the door for yet another rate hike in upcoming months if inflation remained stubborn.

On trading, GBP/USD fell 0.2% as of 19:18 GMT to 1.2736. 

Aussie 

AUD/USD fell 0.6% as of 19:09 GMT to 0.6755. 

US Dollar

The dollar index rose 0.3% as of 19:02 GMT to 102.3, with a session-high at 102.4, and a low at 101.9. 

A Testimony in Favor of Tightening

Fed Chair Jerome Powell said at his Congressional testimony that more interest rate hikes could be undertaken in the future to rein in inflation.

In his testimony ahead of Congress, Fed Chair said the decision to hold interest rates unchanged last week was likely a transient lull and not a sign of ending the cycle.

Powell said in his prepared notes that all participants in the Federal Open Market Committee believe it'll be appropriate to raise interest rates again this year.

He noted that inflation has calmed down but remains much higher than the 2% target.

He noted the labor sector still suffers from shortages despite signs that conditions are improving, however vacant positions outstrip the current workforce by a big margin.

He said the Fed has seen the impact of policy tightening on the most sensitive economic sectors, and that it'll take some time for the full impact to materialise especially on inflation.

He added that inflation outlook remains "firm for the time being".

As for the recent banking troubles, he said such events were a reminder the Fed needs to exercise its regulatory roles closely.

Earlier US data showed unemployment claims stabilized at 264 thousand last week, while analysts expected a drop to 261 thousand.

Gold prices fell on Thursday as the dollar rose against most major rivals while investors assess latest policy decisions by global central banks.

A Testimony in Favor of Tightening

Fed Chair Jerome Powell said at his Congressional testimony that more interest rate hikes could be undertaken in the future to rein in inflation.

In his testimony ahead of Congress, Fed Chair said the decision to hold interest rates unchanged last week was likely a transient lull and not a sign of ending the cycle.

Powell said in his prepared notes that all participants in the Federal Open Market Committee believe it'll be appropriate to raise interest rates again this year.

He noted that inflation has calmed down but remains much higher than the 2% target.

He noted the labor sector still suffers from shortages despite signs that conditions are improving, however vacant positions outstrip the current workforce by a big margin.

He said the Fed has seen the impact of policy tightening on the most sensitive economic sectors, and that it'll take some time for the full impact to materialise especially on inflation.

He added that inflation outlook remains "firm for the time being".

As for the recent banking troubles, he said such events were a reminder the Fed needs to exercise its regulatory roles closely.

Earlier US data showed unemployment claims stabilized at 264 thousand last week, while analysts expected a drop to 261 thousand.

Bank of England 

Bank of England surprised markets with a 0.5% rate hike at the June 22 meeting to 5%, the highest since 2008, and surpassing expectations of a 0.25% rate hike.

Recent UK data showed consumer prices rose 8.7% in May, same as April.

The BoE opened the door for yet another rate hike in upcoming months if inflation remained stubborn.

‏Otherwise, the dollar index rose 0.3% as of 19:02 GMT to 102.3, with a session-high at 102.4, and a low at 101.9.

Gold spot prices fell 1.01% as of 19:03 GMT, or $19.6 to $1,925.3 an ounce.