Silver drops for fourth consecutive session as dollar strengthens

Silver futures slid to the lowest since May 12 in American trade, heading for the third weekly decline in a row, as the dollar index rose to the highest since late May following earlier data from the US, the world's largest economy. 

As of 07:21 GMT, silver futures due on July 15 fell 0.47% to $16.425 an ounce from the opening of $16.465, while the dollar index rose 0.39% to 97.81 from the opening of 97.55, marking the highest since May 30. 

Earlier US data showed the current account deficit rising below expectations in the first quarter, while Federal Reserve Bank of Chicago President Charles Evans and Federal Reserve Vice Governor Stanley Fischer made speeches, while markets await Federal Reserve Bank of Dallas President Robert Kaplan to speak about the economy and monetary policy at the Commonwealth Club, in San Francisco.

Evans talked about current economic conditions and monetary policy at the New York University Money Marketeers event, where he mentioned the possibility of delaying rate hikes until the December meeting, expressing the need to gradually raise rates and trim down the federal balance sheet, while saying the Fed shouldn't hurry in its tightening to avoid setbacks. 

Evans said the US economy is nearing full employment as the economy registers noticeable improvements, while the Federal Reserve voted last week to increase interest rates for the second time this year to between 1% and 1.25%.