Silver settles lower as dollar advances

Silver futures tilted lower for the second session away from October 16 highs, as the dollar index rebounded from early-2015 lows, following earlier data from the US, the world's largest economy. 

As of 06:17 GMT, silver futures due on March 15 fell 0.41% to $17.14 an ounce from the opening of $17.21, while the dollar index rose 0.17% to 90.42 from the opening of 90.26. 

Earlier US data showed industrial production rose 0.9% in December, compared to a 0.1% dip in November, revised from a 0.2% increase, while analysts expected a 0.4% increase. 

The Capacity Utilization Rate rose to 77.9% in December from 77.2% in November, revised from 77.1%, while analysts expected 77.3%. 

Markets are still pricing in policy tightening chances by the European Central Bank and its Japanese counterpart in 2018, which would close some of the gap between them and the Federal Reserve.

President Donald Trump commented on the chances of closing the government in the US with no firm answer, noting that in case no deal was reached between the Democrats and the Republicans in Congress, the government would be shut from January 19. 

Last month, President Donald Trump singed into law the $1.5 trillion tax reform bill, which cuts the corporate tax rate from 35% to 21%, while also signing a stopgap government spending bill to prevent a government shutdown, in turn underpinning Wall Street to successive record highs and hurting safe havens such as silver. 

Now investors await the Beige Book, which derives its importance from the fact that it's issued two weeks before the Federal Open Market Committee's meeting, and upon which policymakers depend to make policy decisions.