Silver hits week high as dollar touches two-month trough

Silver futures titled higher in American trade to September 13 highs as the dollar index declined to July 9 lows, following a spate of US labor and housing data. 

As of 06:20 GMT, silver futures due in December rose 0.18% to $14.30 an ounce, while the dollar index fell 0.59% to 94.55 against a basket of major rivals, plumbing ten-week lows. 

Earlier US data showed unemployment claims fell 3 thousand in the week ending September 15 to 201 thousand from 204 thousand, besting estimates of 210 thousand, while continuing claims fell to 1.645 million in the week ending September 8, beating estimates of 1.705 million. 

The Philly manufacturing index rose to 22.9 from 11.9, beating expectations of 17.5. 

US existing home sales were unchanged in August at an annualized 5.34 million units, compared to a 0.7% dip in July, while analysts expected a 0.5% increase to 5.37 million. 

US President Donald Trump recently warned that Canada is taking advantage of current trade policies, adding that Canada imposes 300% tariffs on US diary products, which he demands to change in the negotiations for a new deal. 

An economic adviser for the White House said that administration will go on and make a trade deal with Mexico without Canada if the later failed to respond to negotiations by the end of the month. 

Earlier this week as well, the White House announced new 10% tariffs on $200 billion worth of Chinese imports, to be increased to 25%, after the US already imposed 25% tariffs on $50 billion worth of Chinese imports, with China retaliating with 5-10% tariffs on $60 billion worth of US products. 

President Donald Trump threatened to impose new tariffs on $267 billion worth of Chinese imports if Beijing retaliated to the latest ones. 

US trade secretary Wilbur Ross said China "is out of bullets" to retaliate against US tariffs, noting that the measures are intended to change Chinese behavior, with close studying to guarantee limited increases to inflation. 

China filed another complaint against the US to the World Trade Organization, which isn't the first time China has done such a move.