Silver sheds more than 1% on rising dollar

Silver prices fell on Friday, and dropped more than 1.0%, as the US dollar rose against a basket of currencies, on track for the second straight weekly loss, on fears of actual demand in China.

Gold prices fell 1.2% to $26.00 an ounce, after opening at $26.32, and hit a high at $26.44.

Gold closed higher by 0.35% yesterday, and posted its second straight daily gain, thanks to a drop in the US bond yields.

The dollar index rose 0.1% today, to head for the second straight daily gain against a majority of rivals, which weighs down on dollar-denominated metals prices. 

This US dollar rose thanks to high demand, as investors expect the Federal Reserve to start reducing the bond-buying program soon.

Silver prices lost 0.7% so far this week, on track for the second straight weekly loss due to concerns over the Chinese demand.

Data showed this week that the Chinese economy grew less than expected during the second quarter, slowing down after recording strong growth during the first quarter, which lowered expectations of the Chinese demand for commodities.