Silver slumps 3% to one-week trough

Silver slumps 3% to one-week trough

Silver futures slumped three percent in American trade away from the highest since October 16 to the lowest since November 10, as the dollar index gained ground, following a basket of data from China, the world's largest metals consumer, and the US, the world's biggest economy. 

As of 07:27 GMT, silver futures due on December 15 plunged 2.98% to $16.855 an ounce from the opening of $17.373, while the dollar index rose 0.32% to 93.96 from the opening of 93.66. 

Earlier Chinese data showed the CB leading index steadied at 1.3% in October, same as September, while several news reports indicated the growth rate there might pass 6.5% next year, especially if 2017 growth hit 6.8% or 6.9%. 

Otherwise, the CB leading index from the US rose 1.2% in October past expectations of a 0.6% rise, compared to a 0.2% decline in September, while markets look forward to any news regarding the tax reform bill in Congress. 

President Donald Trump said earlier today that the US will consider North Korea a country that harbors terrorism, and will announce new sanctions on the regime tomorrow. 

On Thursday, the House of Representatives passed the tax reform bill by a 227-205 margin, shifting the legislative final struggle to the Senate, amid concerns the upper house could delay the reforms supported by president Donald Trump, which would cut the corporate tax rate to 20% from 35%, until 2019.

Republican Senator Collins said earlier today there should be some amendments to the tax cut bill, expressing her preferment to other suggestions in the matter. 

Otherwise, Goldman Sachs forecasts four Fed rate hikes in 2018, and expected the Federal Reserve to raise its growth projections to 2.5% from 2.4%, while cutting unemployment projections to 3.7%, as inflation is expected to steady at 1.8% by the end of 2018.



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