Silver sinks 2% as dollar muscles up ahead of Yellen's speech

Silver futures tumbled nearly two percent in American trade as the dollar index rose to the highest since July 20, following a basket of data from the US, the world's largest economy, and ahead of a speech by Federal Reserve Chair Janet Yellen in Washington. 

As of 07:59 GMT, silver futures due on December 15 slid 1.62% to $16.955 an ounce from the opening of $17.235, while the dollar index added 0.23% to 94.98 from the opening of 94.74. 

Earlier US data showed JOLTS Job Openings steadied at 6.09 million in September, same as August's reading, while analysts expected a dip to 5.98 million.

Otherwise, Federal Reserve Governor Randal Quarles spoke at The Clearing House Annual Conference, in New York, while Federal Reserve Chair Janet Yellen is due to deliver acceptance remarks at the presentation of the Paul H. Douglas Award for Ethics in Government, in Washington DC

Markets are pricing in a probable rate hike in December for a third time this year while global stock indices hit record highs, weighing further on the precious metal and hurting haven demand.

Otherwise, discussions have started in the House of Representatives on the new tax bill proposed by Republicans after releasing its first draft last week, intending to cut corporate taxes from 35% to a flat 20%. 

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.