Silver on track for monthly loss on Fed's policy predictions

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.