Silver prices rose in European trade on Friday for the first session in five days amid attempts to recover from two-month lows amid improving demand on safe havens.

Prices are also boosted by hopes of increasing actual demand in China after data showed Chinese exports rebounded in December in a sign of economic recovery. 

Silver Prices Today

Silver prices rose 1.4% to $23.06 an ounce, with a session-low at $22.75, after losing 0.6% on Thursday, the fourth loss in a row, plumbing a two-month trough at $22.48 an ounce following remarks by Fed officials. 

Haven Demand

Demand on safe havens such as gold and silver increased amid worsening geopolitical conditions in the Middle East, with the US and Britain launching air strikes against Houthi targets in Yemen.

The developments threaten of a widening of the front of the Israel-Gaza war as more regional and international powers step in the fray. 

Chinese Demand

Customs data from China showed exports rose by 2.3% in December, beating expectations of a 1.7% rise, and up from 0.5% in November.

It's another sign of improving performance by various economic sectors in China, which could bode well for precious metals demand. 

Global oil prices rose on Friday, extending gains for the second session with US crude hitting a one-week high, while Brent climbed to a two-week high amid growing concerns about supply disruptions in the Middle East.

The US and Britain recently launched air strikes against Houthi targets in Yemen, threatening more tensions in the region. 

Global Oil Prices 

US crude rose 1.3% to $73.97 a barrel, the highest in a week, while Brent added 1.5% to $79.39 a barrel, the highest since December 28. 

US crude rallied 2.1% on Thursday, while Brent added 2.0%, the second profit in three weeks after an oil tanker was seized near Oman. 

Iranian state media said authorities have seized an oil tanker that was originally seized from Iran by US authorities, in a step that's sure to raise tensions.

Additionally, Iran-backed Houthi group in Yemen continues to harass and attack commercial ships going through the Red Sea, threatening global supplies of crude and other commodities.

Worsening Geopolitical Tensions 

US President Joe Biden said his country has executed air strikes against several targets in Yemen, used by the Houthi group to attack ships in the Red Sea.

Geopolitical tensions are growing in the Middle East after Houthis launched attacks on ships going through the Red Sea towards the Suez Canal in Egypt. 

Houthis said the attacks will be carried out in retaliation of Israel's war against the Gazan strip and the Hamas movement. 

‏A Surge in Global Shipping Costs 

Several major shipping companies scaled down their operations through the Suez Canal in December, preferring a safer but much longer passage around South Africa, raising shipping costs considerably. 

Gold prices rose in European trade on Friday away from four-week lows amid improving risk aversion as geopolitical tensions mount in the Middle East.

The US and Britain launched airstrikes against Houthi's targets in Yemen, extending the fallout of the ongoing Gaza-Israel war in the region. 

Prices are also boosted by the weaker dollar against a basket of major rivals as markets believe the Fed will cut interest rates in March.

Gold Prices Today 

Gold prices rose by over 0.5% to $2,039 an ounce, after rising 0.25% on Thursday away from a four-week trough at $2,013. 

Middle East Tensions 

US President Joe Biden said his country has executed air strikes against several targets in Yemen, used by the Houthi group to attack ships in the Red Sea.

Geopolitical tensions are growing in the Middle East after Houthis launched attacks on ships going through the Red Sea towards the Suez Canal in Egypt. 

Houthis said the attacks will be carried out in retaliation of Israel's war against the Gazan strip and the Hamas movement. 

The Dollar

The dollar index fell over 0.1% for the third straight session against a basket of major rivals. 

Dollar's decline makes dollar-denominated gold futures cheaper to holders of other currencies. 

The decline comes despite recent data that showed US consumer prices rose past estimates in December. 

However, markets are putting a 73% chance for a US interest rate cut at the Fed March meeting. 

Richmond Fed President Thomas Parkin said that consumer prices data didn't do much to clear up the path of inflation, as the December hike in prices was focused on commodities.

Now investors await US producer prices data for December to gather more clues.

The SPDR

Gold holdings at the SPDR Gold Trust fell 1.15 tonnes yesterday to a total of 863.84 tonnes, the lowest since November 3. ‏

Dollar stabilized against most major rivals on Thursday following US inflation data.

The data showed consumer prices rose 3.9% y/y in December, down from 4% in November, but above estimates of 3.8%.

On a monthly basis, prices rose 0.3% in December, above estimates of 0.2%, while core prices rose 0.3%. 

The US corporate earnings season is starting this week, with several major banks such as Wells Fargo, Bank of America, and JPMorgan releasing results on Friday.

On trading, the dollar index rose 0.1% to 102.4, as of 20:44 GMT, with a session-high at 102.7, and a low at 102.1. 

Aussie 

AUD/USD fell 0.1% to 0.669 as of 21:34 GMT.

Loonie

The Canadian dollar fell 0.1% against its US counterpart to 0.7466.