Silver prices rose in European trade above 3 week lows hit on Friday as the dollar stalls, but the white silver is still on track for a monthly loss on Fed's policy predictions. 

Silver prices rose 0.7% to $22.60 an ounce, after closing down 1.3% on Friday, the sixth loss in a row, marking three-week lows at $22.14. 

Silver lost 7.5% last week, the first weekly loss in three weeks, and the largest since June 2021 on dollar's spike in value.

However on Monday, dollar declined 0.3% away from 18-month highs on active profit-taking against major rivals.

Silver is down 3.1% so far in January, on track for a hefty monthly loss following Fed's last meeting. 

The Fed said it'll end the bonds purchases program next March and hike rates as soon as possible to counter inflation.

Fed Chair Jerome Powell said the US economy is in a better state now and doesn't require constant support, with the committee planning a rate hike in March.

Therefore the markets are currently pricing in an interest rate hike in March, in turn bolstering the dollar against major rivals and hurting silver.

Oil prices declined in European trade for the first session in five away from eight-year highs on profit-taking, while on track to mark highest monthly profit since February 2021.

US crude fell 0.25% to $87.24 a barrel, while Brent fell 2.1% to $88.89 a barrel, with a session-high at $91.38.

US crude closed Friday unchanged after marking eight-year highs at $88.82 a barrel, while Brent rallied 0.9% to $91.68 a barrel.

Oil prices rose 3.25% throughout last week, the sixth weekly profit in a row on geopolitical tensions in Eastern Europe and the Middle East.

Oil prices are on track for a 15% monthly profit, on track for the second monthly profit in a row, and the largest such profit since February 2021. 

The wide gains came aid supply shortage concerns, with tensions surging between Russia and the West over Ukraine, threatening Russian energy supplies to Europe.

NATO is rapidly seeking alternate energy sources, especially after the UK warned from imminent Russian invasion of Ukraine. 

US President Joe Biden said he's considering personal sanctions against Russian president Vladimir Putin if Russia invaded Ukraine.

Western leaders intensified their militaristic preparations and put a plan to protect Europe from a sudden shock caused by energy disruptions from Russia.

In the Middle East, tensions are flaring as well between UAE and the Houthi rebels in Yemen, who launched ballistic rockets in UAE territories. 

The rockets were aimed at the US base in UAE but were intercepted successfully by US patriot rockets.

Now analysts expect continuous gains for oil prices in the new few months, possibly surging above $100 a barrel. 

OPEC countries and collaborators are seeking to raise their monthly production quotas by 400,000 bpd, with some countries failing to reach their requires quotas so far. 

Euro rose in European trade against dollar away from 19-month loss, while on track for a monthly loss amid mounting concerns over the widening policy gap between Europe and the US, with the Federal Reserve preparing a rate hike soon.

EUR/USD rose 0.3% to 1.1182, with an intraday low at 1.1137, after closing Friday flat, not far from 19-month lows at 1.1121.

Euro lost 1.7% last week against dollar, the second weekly loss in a row, and the largest since June 2021. 

Euro is still down 1.6% so far in January against the greenback, resuming the long streak of monthly losses after a hiatus last month. 

Euro's heavy losses came as the Federal Reserve prepares for an interest rate hike very soon, while ending the bonds purchases program in March as inflation spikes. 

Fed chair Jerome Powell believes the economy is solid currently and doesn't require constant monetary support, therefore the bank is planning a rate hike soon.

Prospects for rates hike are underlying the dollar and causing concerns about policy divergence between the US and Europe, since the European Central Bank is still not interested in any form of policy tightening.

USD/JPY tilted higher in Asian trade away from December 2020 lows following a spate of data from Japan and ahead of US data that include multiple speeches by Fed officials. 

As of 06:09 GMT, USD/JPY rose 0.16% to 115.47 with a session-high at 115.59, after closing last week at 115.19.

Japan's retail sales showed a 1% drop in December, compared to a 1.3% rise in November, month on month, while the sales rose 1.4% y/y, slowing down from 1.9%. 

From the US, industrial production is expected down 1% in December, compared to a 7% spike in November. 

US housing starts are expected up 4.2% in December, while consumer confidence is expected to decline to 36.7 from 39.1 in December. 

US Chicago PMI is expected down slightly to 61.7 in January from 63.1 in December.