Strong Dollar Dispels Silver’s Bullish Strength in Early Trade

Silver pared all of its gains in early Asian trading hours to reverse lower in European session on Wednesday. The grey metal failed to surpass the 16.000 milestone as the dollar became stronger on the back of upbeat U.S. economic data.

According to a monthly survey released by the Conference Board on Tuesday, consumer optimism about the U.S. economy increased to the highest level since August 2001. The Consumer Confidence Index jumped to 113.7 in December, comfortably beating analysts’ expectation calling for the headline figure to hit 109 for the month.

The dollar index, which gauges the strength of the greenback versus a basket of six major currencies, rose 0.18% 103.23. A strengthening U.S. dollar tends to sap investor demand towards silver as the price of precious metal becomes more expensive for buyers holding using local currencies.

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