Silver drops 1% as risk aversion cools

Silver futures slid over one percent in American trade as the dollar index hit the lowest since October 26, following a basket of data from the US, the world's largest economy, and after the release of the Senate tax reform bill. 

As of 07:33 GMT, silver futures due on December 26 rose 1.18% to $17.140 an ounce from the opening of $16.940, while the dollar index dipped 0.05% to 94.87 from the opening of 94.91. 

Earlier US data showed the University of Michigan's Consumer Sentiment survey fell to 97.8 in November from 10.7 in October, revised upwards from 101.0, while analysts expected 100.8. 

The Senate released its tax reform bill on Thursday, which was much softer than the draft version in the House of Representatives, especially when it came to corporate and individual tax cuts. 

The more timid bill raised concerns in the markets and nudged the dollar to a two-week trough as the US markets closes on Friday for the Veteran Day holiday. 

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.