Silver rises for second day as dollar drops

Silver continued to rise today for the second consecutive day, to rebound from a 3-week low, as US dollar fell ahead of the launch of the US Federal Reserve meeting, with forecasts of an interest rates cut for the second time this year.

As of 11:45 GMT, silver rose by 0.2% to $17.88 an ounce, from the opening of $17.84, with a high of $17.90, and a low of $17.74.

Yesterday, silver closed higher by 2.25%, its first gain in three days, to recover from a 3-week low of $17.39 an ounce, on investors' risk aversion and increased haven demand after the sabotage attacks on Saudi oil facilities.

 The dollar index fell today by 0.1% against a basket of major currencies, which favor most metals and commodities denominated in dollars.

This drop in dollar comes ahead of the launch of the US Fed meeting, with forecasts of an interest rates cut by 25bp cut to 2.0% for the second time this year.