Silver falls over 1% to week lows, dollar scales 1-1/5 year peak

Silver futures fell over one percent off November 2 highs for the second session as the dollar index hit June 2017 highs, following earlier data from China, the world's largest metals consumer, and the US. 

As of 08:28 GMT, silver futures due in March fell 1.35% to $14.65 an ounce, marking December 7 lows, while the dollar index rose 0.38% to 97.43, the best in a year and a half. 

Earlier Chinese data showed the unemployment rate fell to 4.8% from 4.9%, while retail sales rose 8.1%, slowing down from 8.8%, as industrial output slowed down in growth to 5.4% from 5.9%. 

From the US, retail sales rose 0.2% in November, beating estimates of a 0.1% increase, while down from October's 1.1% increase. 

Core sales, excluding transportation, rose 0.2%, matching estimates and down from 1.1% in October. 

US industrial production rose 0.6% in November, compared to a 0.2% dip in October, beating estimates of a 0.3% increase.

The capacity utilization rate rose to 78.5% from 78.1%, slightly missing estimates of 78.6%. 

Finally, the manufacturing PMI receded to 53.9 from 55.4, while the services PMI slipped to 53.4 from 55.4, missing estimates of 54.7. 

In a recent interview with Reuters, US President Donald Trump renewed criticisms of the Federal Reserve's policy tightening and rate increases. 

Trump expressed his desire for the Fed to cut rates to support the economy especially amid the current trade with China and other countries. 

On the chances of an economic recession, Trump believes the economy to be going strong, with corporations performing well too. 

The Federal Open Market Committee is scheduled to meet on December 18-19, with analysts expected the fourth rate hike of the year to below 2.25%. 

The Fed will also release three-year forecasts for growth, inflation, unemployment, and interest rates.