Silver prices declined to two-year lows, carrying on the hefty losses from April and almost falling below $20 an ounce. 

The causes for these losses include the dollar, global central banks, and China's economy, and we'll elucidate all. 

Prices

Silver fell today to $20.45 an ounce, a July 2020 low, while down over 20% since April 18 as selloff pressures only accumulates. 

Dollar

The dollar index jumped to a fresh 20-year high at 105, in turn pressuring dollar-denominated commodity and mineral prices.

Such gains are due to the Federal Reserve's moves to control runaway inflation in the US, in turn accelerating the pace of interest rate hikes. 

Global Central Banks

Central Banks in the US, New Zealand, and Canada all hiked rates by 50 basis points this month to control runaway inflation.

Bank of England also hiked rates by 25 basis points for the fourth time in a row, with a similar hike by the Reserve Bank of Australia.

The European Central Bank is expected to follow suit soon enough, probably starting in July.

China's Economy

Chinese government continues to restrict movements in several major cities to contain a Covid 19 infection, in turn hampering economic growth.

China is the world's largest metals consumer, thus we see prices of all metals suffering when China's GDP suffers. 

Estimates

Now analysts expect a bearish trend for silver due to dollar's strength, with a potential to tumble below 20 and hit 18. 

Gold prices declined on Monday away from $1800 for the third straight session, marking four-month lows on rate hike prospects. 

The precious metal is thus losing its haven status to the powerful dollar.

Prices Today

Gold fell over 1.3% to $1,786 an ounce, a January 28 low, after losing 0.6% on Friday, the second loss in  a row as most dollar-denominated commodities take a hit. 

Gold was down 3.8% last week, the fourth weekly loss in a row, and the longest such streak this year as dollar spiked. 

Global Central Banks

Central Banks in the US, New Zealand, and Canada all hiked rates by 50 basis points this month to control runaway inflaiton.

Bank of England also hiked rates by 25 basis points for the fourth time in a row, with a similar hike by the Reserve Bank of Australia. 

The European Central Bank is expected to follow suit soon enough, probably starting in July.

Estimates 

Now analysts expect solid path downward for gold prices if dollar continues receiving good support from bullish Fed forecasts. 

SPDR

Gold holdings at the SPDR Gold Trust fell 4.93 tones, the seventh decline in a row, to a total of 1,055 tones, the lowest since March 4. 

Euro rose in European trade away from five-year lows against dollar for another session on active short-covering. 

The euro is also recovering on hopes of European policy tightening after bullish remarks from some ECB members. 

EUR/USD last traded up 0.3% at 1.0436, after rising 0.25% on Friday, the first profit in four days away from 1.0350, a January 2017 lows. 

Euro fell 1.35% last week against dollar amid mounting risks for the European economy. 

The Dollar

The dollar index fell 0.1% on Monday for another session away from 20-year highs at 105.00 against major rivals on active profit-taking after massive gains last week.

European Rate Hikes

Some European Central Bank members expressed concerns about euro's weakness, and the importance of intervening with bullish policies to bolster its standing and stave off inflation.

Now markets are pricing in a 95 basis points hike in Europe by the year's end, up from 80 basis points from before. 

Oil futures tilted lower 2% in Asian trade with US crude off March 28 highs, while Brent slipped from May 9 highs, even as the dollar index gave up ground as well.

As of 06:29 GMT, US crude futures due in June fell 1.76% to $109.06 a barrel, while Brent July futures tumbled 2.55% to $109.77 a barrel, as the dollar index slipped 0.02% to 104.57. 

China's retail sales fell 11.% in April, while industrial production tumbled 2.9% m/m, with the unemployment rate up to 6.1% from 5.8%

The Chinese government admitted that under pressure from the latest Covid 19 wave, economic performance has suffered in the short term. 

Latest World Health Organization ddata showed Covid 19 infections are up to 517.65 million, with the death toll at 6.261 million.

From the US, the Empire State Manufacturing index is expected down to 15.3 from 24.6.

Goldman Sachs analysts have cut estimates for US GDP growth this year to 2.4%, and next year to 1.6% due to the ongoing inflationary pressures. 

Analysts are also taking into account the rapid pace of rate hikes by the Federal Reserve, expected throughout the year. 

Fed Chair Jerome Powell said last week that cutting down inflation to the targets of 2% will case some pain to the economy, but it's a necessary step, to keep hiking rates throughout the next two years to stabilize the economy. 

Baker Hughes data last week showed US oil rigs rose by 6 rigs to 563 rigs, the highest since March 2020, and it's the eighth weekly increase in a row.

US output fell for the first time since late January, by 100 thousand bpd to 11.8 million bpd away from May 2020 highs, while still down 1.3 million bpd, or 11% from a record high at 13.1 million bpd, reached in March 2020.