Silver Prices Nudge Higher in Tepid Trade; On Track to Snap Four-Day Skid

London (June 21)  Silver prices advanced modestly on Wednesday, clawing back from a four-day losing streak that was partly attributed to a rebounding U.S. dollar.

July silver futures advanced 4 cents, or 0.2%, to $16.45 a troy ounce at 7:00 a.m. ET. The contract fluctuated between a narrow range of $16.40 and $16.50 through the overnight session.

The grey metal has declined in each of the past four sessions and nine of the last ten. The contract has lost nearly 7% over that streak.

Gold prices also recouped some of their losses Wednesday, though the downtrend remained virtually intact. The August futures contract edged up $4.20, or 0.3%, to $1,247.70 a troy ounce.

A resurgent dollar has placed downward pressure on commodity prices this week. The U.S. dollar index, a weighted average of the greenback against a basket of six competitors, rose to more than one-month highs on Tuesday. It was last seentrading 0.1% lower at 97.64.

Gold’s premium over silver strengthened to 75.68 ounces on Tuesday. That was the highest level in a month.

For foreign investors and holders of other currencies, a stronger dollar is often a disincentive for investing in gold and silver, which are priced in greenbacks. The dollar’s bull market run since mid-2014 has been largely associated with an exodus from precious metals, as traders doubled down on higher U.S. interest rates. This environment typically favors the dollar.

The British pound has declined sharply in recent sessions as the United Kingdom and Europe embarked on high-stakes trade negotiations following Brexit. Some analysts say the U.K.’s negotiating hand has weakened since the June 8 election, where Prime Minister Theresa May failed to build on her party’s majority in the House of Commons.

Source: EconomicCalendar