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

Silver prices rose in European trade for the first time in five days off two-month lows hit earlier in the Asian session, while still heading for the third weekly loss in row. 

The weekly loss came as dollar powered up against rivals following bullish remarks from Fed officials and strong US data, boosting the case for a 0.25% rate hike in June.

Silver Prices Today

Silver prices rose 2% to $23.19 an ounce, with the lowest since March 22 at $22.67.

Silver lost 1.5% yesterday, the fourth loss in a row, and the longest such streak of daily losses since February. 

Silver also fell 3% so far this week on track for the third weekly loss in a row. 

Silver prices are down a heavy 7.5% in May so far due to concerns about weak industrial demand on the white metal, and worries about the Chinese economy. 

US Dollar

The dollar marked two-month highs yesterday against a basket of major rivals before declining today on profit-taking ahead of US personal spending data. 

Such gains heaved pressure on the prices of metals and commodities denominated by the dollar, especially silver and gold, and made them costlier to holders of other currencies. 

Some Fed officials took a very bullish stance and pointed to the need for more policy tightening in order to bring inflation down to 2%. 

Earlier Washington data showed the US economy grew better than expected in the first quarter of the year, while unemployment claims were below estimates last week. 

US Rates

Such remarks and data boosted the likelihood of a 0.25% Fed rate hike in June from 13% a week ago to 40% currently.