Silver rallies 2% past $17 as dollar declines

Silver futures rose over two percent in American trade past October 20 as the dollar index lost ground, amid a lack of data from the US, the world's largest economy, and after Federal Reserve Bank of New York President William Dudley's speech earlier today. 

As of 08:28 GMT, silver futures due on December 15 rose 2.35% to $17.230 an ounce from the opening of $16.834, while the dollar index dipped 0.21% to 94.74 from the opening of 94.94. 

Earlier, Dudley said the Fed's 2% target is not a ceiling for inflation, noting there might be a need to allow inflation past that target to ensure its stability, expecting inflation to marches higher gradually. 

Dudley added the US economy is near full employment, but softening inflation remains an enigma, noting that inflation slowdown this year was sudden, while economic stability means the Fed is ready to change its agenda. 

Earlier news reports indicated the US administration didn't intervene in the retirement decision despite its plans to restructure the Federal Open Market Committee, while president Donald Trump recently nominated FOMC member Jerome Powell to chair the Fed after Janet Yellen's current term ends in February, and also indicated there were four candidates to join the Committee later. 

The position of the New York Federal Reserve Chair is a crucial one, for its known importance in the financial and monetary policymaking sphere in the US, with the the president of the bank usually impacting stock exchanges regularly with his/her remarks, and the holders of the position has a permanent right to vote in the FOMC.

Otherwise, work has resumed in a silver mine belonging to Buenaventura in Peru, after strikes led to production stoppage of the world's largest precious metals miner last Tuesday, with the government eventually agreeing to discuss compensation demands for using the land. 

Buenaventura is the first Latin American mining company to be listed in the New York Exchange since 1996, and it's worth noting the company is expected to mine 17 and 18 million ounces of silver in Peru by the end of year, up from 16.2 million in 2016.