Silver drops 1% as FOMC meeting carries on

Silver futures fell one percent in American trade as the dollar index traded flat, following a basket of data from data from China, the world's largest metals consumer, and the US, while the Federal Open Market Committee's two-day policy meeting starts in Washington. 

As of 06:59 GMT, silver futures due on December 15 slid 0.93% to $16.690 an ounce from the opening of $16.747, while the dollar index barely inched up 0.01% to 94.57 from the opening of 94.56. 

Earlier Chinese data showed the manufacturing PMI down to 51.6 in October from 52.4 in September, missing expectations of 52.2, while the services PMI slowed down as well to 54.3 from 55.4 in the previous reading. 

Earlier US data showed the Chicago PMI rose in October to 66.2 from 65.2 in September, besting analysts' expectations of 60.2, while the CB Consumer Confidence survey surged to 125.9 in October, the highest since December 2000, up from 120.6 in September, while analysts expected 121.1. 

Now markets look forward to the decisions resulting from the Fed's meeting on Tuesday and Wednesday, with policymakers expected to hold interest rates unchanged at between 1.00% and 1.25%. 

Otherwise, President Donald Trump is expected to pick Open Market Committee member Jerome Powell to the post of Federal Reserve Chair after current occupant, Janet Yellen's term ends in February.