Dollar Surge Weighs on Silver as Prices Drop Below $59

Silver prices declined to around $58.50 an ounce on Friday as the US dollar rebounded after two days of losses.

The metal dropped by about 0.8% in early trade, marking a reversal from its brief recovery following the Federal Reserve's decision to keep interest rates unchanged.

Brown Brothers Harriman strategists attributed the earlier dollar decline to the removal of July tightening bets and a lack of convincing policy guidance.

A weaker dollar would typically support silver by lowering its cost for overseas buyers, but the current strong dollar is exerting downward pressure on prices.