Silver rallies one percent on haven demand

Silver futures rose nearly one percent as the dollar index lost ground, following a spate of data from the US, the world's largest economy, and as the Federal Open Market Committee's policy meeting takes place in Washington. 

As of 05:04 GMT, silver futures due on December 15 climbed 0.90% to $17.310 an ounce from the opening of $17.156, while the dollar index shed 0.14% to 91.92 from the opening of 92.05. 

Earlier US data showed housing starts fell in August, although were still above expectations, while building permits rose unexpectedly last month, as import prices accelerated beyond forecasts, and the current trade deficit widened more than expected in the second quarter. 

Markets look forward to policy decisions by Federal Open Market Committee members in this week's periodic meeting, at which policymakers are expected to unveil their three-year forecasts for inflation, growth, unemployment, and interest rates. 

Fed policymakers are expected to start the process of trimming down the Federal Reserve's $4.2 trillion holdings of treasury bonds and mortgage-backed securities, while maintaining overnight interest rates at between 1% and 1.25%.