Silver on track for second weekly loss in row

Silver prices rose in European trade for the first session in four days away from two-month lows, with the white metal on track for the second weekly loss in a row as the dollar powers up.

Concerns are ongoing as well about the Chinese economy following a batch of weak data that shows recovery remains a long way down the road.

Silver Prices Today

Silver prices rose 1.3% to $23.80 an ounce, after losing 1.1% yesterday, the third loss in a row, marking a two-month low at $23.32 an ounce as most dollar-denominated metals decline.

Silver prices are down 0.75% so far this week on track for the second weekly loss in a row as the dollar muscles up.

The Dollar

The dollar hit two-month highs yesterday against a basket of major rivals amid prospects the Federal Reserve might raise interest rates by 0.25% in June. 

US President Joe Biden and top Republican in the House of Representatives, Kevin McCarthy, asserted their commitment to reach a deal soon to raise the government debt level from $31.4 trillion.

A batch of recent data beat expectations, with US unemployment claims falling more than expected last week.

Such data shows the US labor sector remains rather tight, pressuring the Federal Reserve to extend policy tightening. 

Such developments raised the prospect of a 0.25% rate hike by the Federal Reserve in June from 12% to 37%. 

Chinese Demand

Recent Chinese data showed weaker factory output, retail sales, and investments last month, in a sign of weaker industrial activities, in turn hurting demand on silver.