Silver settles higher as dollar index plumbs seven-month low

Silver futures edged up in American trade on short-covering after hitting the lowest since May 11 earlier this week, as the dollar index plumbed seven-month lows, following earlier data from the US, the world's largest economy. 

As of 07:01 GMT, silver futures due on September 15 inched up 0.05% to $16.640 an ounce from the opening of $16.560, while the dollar index tumbled 0.92% to 96.53 from the opening of 97.43. 

From the US, earlier data showed an unexpected rise in consumer confidence in June, while the Richmond manufacturing index rose past expectations, as the S&P/CS Composite-20 House Price Index fell unexpectedly. 

Similarly, we followed Federal Reserve Bank of Philadelphia President Patrick Harker's speech about the economic outlook and international trade at the European Economics & Financial Centre, in London, at which he described the recent weakness inflationary pressures in the US as transient, while expressing his ongoing support for tightening the policy and increasing interest rates.

Harker said another Fed rate hike this year would be appropriate, while downgrading his inflation projections a bit, but still expecting inflation to hit the Federal Reserve's 2% target by 2018, adding that the Fed is moving into the right direction, and the labor sector is getting rid of its weaknesses almost entirely, and forecasting a growth rate of 2.3% in America this year.

Federal Reserve Chair Janet Yellen spoke today about global economic issues at the British Academy 'President's Lecture', in London, after the International Monetary Fund downgraded its forecasts for US growth to 2.1% this year from 2.3% in previous forecasts in April, and to 2.1% in 2018 from 2.5%, while mentioning the US economy hasn't created income-based growth so far.