Silver plumbs 3-month low on robust dollar

Silver prices fell during the European session on Friday, to continue to nosedive for the second straight day to 3-month trough, and head for the largest weekly loss in 3 years, on the US dollar surge and the weak demand on safe havens.

Silver prices fell by 1.2% to $16.89 an ounce (the lowest since August 20th), from the opening of $17.09, with a session-high of $17.11.

The white metal shed 2.8% yesterday, its third loss in 4 days, as most dollar-dominated metals fell.

During this week, silver prices have lost 6.75% so far, on its way for first weekly loss in a month and the largest weekly loss since October 2016.

Otherwise, the US dollar rose by 0.2% on Friday, to extend its gains for the fifth straight day, and hit a 3-week high of 98.23 points, to reflect the US currency robust performance against a basket of currencies.

 This broad rally by the US dollar is due to the trade war risks receding in addition to the continued positive data and the strong US services sector data during October, which indicates that the US Federal Reserve will unlikely cut the interest rates for the fourth during this year.

Silver also fell under pressure this week after demand on safe havens has weakened sharply due to the positive developments in the US-China trade talks and the near signing of the first phase trade deal, which was clear in the broad rally in most global stock markets, chief among these is Wall Street's jump to all-time highs.