Silver prices on track for second weekly loss in row as dollar strengthens

Silver prices rose in European trade away from two-week lows and after marking the biggest loss in five weeks, with the white metal on track for the second weekly loss in a row as dollar strengthens. 

Dollar rallied to a three-week high following strong US data, which bolstered the case for yet another Fed rate hike in September.

Silver Today

Silver prices rose 0.6% to $24.28 an ounce, with a session-low at $24.11, after closing down 3.1% on Thursday, the worst loss in a month, marking a two-week trough at $24.05. 

Silver is currently down 1.4% so far this week, on track for the second weekly loss in a row. 

The Dollar

The dollar index rose 0.35% on Friday, extending gains for the second straight session and hitting a three-week high at 102.04 against a basket of major rivals. 

Dollar was boosted once more amid increasing prospects of a 0.25% Fed rate hike in September to reach the target of 5.75%, the highest in 2022 years.

Strong Data

US GDP growth clocked in at 2.4% in the second quarter, beating estimates of 1.8%, while unemployment claims fell for the third straight session.

The data showcases the economy's resilience despite recent aggressive monetary tightening measures by the Fed to control inflation.

The Fed

The Federal Reserve opened the door for interest rate hikes in the future, which will be decided according to upcoming data.

The Fed raised interest rates by 25 basis points this week to 5.5%, the highest in 22 years amid efforts to bring down inflation.