Silver trades slightly higher amid negative pressure from the dollar’s strength

Silver traded slightly higher around $16.18 an ounce on Thursday, yet the immense pressure from the dollar’s strength may push prices lower.

The precious metal is still moving in a downside direction since hitting a peak of $18.45, tracking losses in commodities.

Silver prices saw a rebound in January, but thereafter it plunged in February as the dollar climbed to more than 11 years high versus major currencies.

The dollar index, which tracks the green currency’s movements versus a basket of major currencies, rose near an 11 1/2-year high around 96.37. 

With expectations the Fed would raise interest rates sooner or later this year is adding to the dollar’s strength, as it indicates the end of the era of zero of low interest rates.  

The upgrade in ECB inflation forecasts and comments about stimulus helped silver to rise to a high of $16.36, but it failed to rise further.

The ECB raised its 2016 inflation forecasts to 1.5 percent from 1.3 percent, giving some relief to the metal as an inflation hedge.

Tomorrow, the awaited non-farm payrolls data, which may show American employers added 240,000 jobs last month, will have an impact on the silver movements.