Silver sheds 1% on weakened haven demand

Silver futures shed one percent in American trade even as the dollar index lost ground, following a basket of data from China and the US, and ahead of the release of the Senate tax reform bill. 

As of 07:33 GMT, silver futures due on December 15 rose 1.18% to $17.140 an ounce from the opening of $16.940, while the dollar index declined 0.05% to 94.87 from the opening of 94.91. 

Earlier Chinese data showed inflation accelerated to 1.9% from 1.6% in September, besting expectations of 1.8%. 

China's producer prices steadied at 6.9% in October, beating expectations of a slowdown, which indicates a possible quickening of Chinese inflationary pressures in the next few months. 

Chinese Prime Minister Li Chiang said his country's economy is facing a phase of uncertainty due to outside risks, noting the importance of maintaining stability and carry on the policies of stimulating the economy and enforcing economic reforms. 

US president Donald Trump reached Beijing earlier on a three-day visit to discuss a variety of issues, with the North Korea nuclear situation on top of them. 

In South Korea, Trump said North Korea took America's policy of self-restraint as weakness, asking Pyongyang to recalculate their position as the current US administration is different from the previous one. 

Earlier US data showed unemployment claims rose to 239 thousand in the week ending November 4, above the expected 232K, and compared to the previous reading's 229K, while continuing claims rose 17 thousand to 1.901 million from 1.884 million in the week ending October 21.  

The Senate's tax reform bill is expected to be quite different from the one being considered in the House of Representatives, which aims to cut corporate taxes to 20% from 35%. 

The dollar index hit the highest since July 20 on Tuesday after the House of Representatives started discussing the tax reform plans supported by President Donald Trump after the first draft of the bill was released last week, while markets price in a third Fed rate hike in December. 

Otherwise, US Treasury Secretary Stephen Mnuchin said earlier this week that Trump wants to stop the healthcare system known as Obama to save money, adding the administration aims to apply tax reforms in 2018.

Mnuchin's remarks came after the Washington Post reported from sources inside the Republican Party that party leaders in the Senate are studying the possibility of putting off the tax reform plans until 2019 to go with the Senate rules. 

On a more pertinent note, 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 to 18 million ounces of silver in Peru by the end of year, up from 16.2 million in 2016.