Silver skids below $17 after dollar's surge to four-week high

Silver futures skidded over two percent in American trade, bouncing off the highest since June 14 as the dollar index powered up to four-week highs, following earlier data from the US, the world's largest economy.  

As of 06:40 GMT, silver futures due on September 15 slumped 2.52% to $16.69 an ounce from the opening of $17.06, while the dollar index rose 0.41% to 93.79 from the opening of 93.41, marking a four-week high. 

Earlier US data showed retail sales rose 0.6% in July, accelerating from a 0.3% advance in June, revised from a 0.1% decline, and beating expectations a 0.3% growth. 

Core retail sales accelerated as well for the first time since the start of the year to 0.5% from 0.1%, revised from a 0.3% decline in June, and beating forecasts of 0.3%, as markets await the release of the Federal Reserve's minutes of the July 25-26 meeting on Wednesday as investors assess the chances of a third rate hike this year and tightening of monetary policy.

Similarly, import prices accelerated to 0.5% from 0.3% in June, besting expectations of 0.4%, while on a yearly basis, prices steadied at 1.5%, same as expected. 

Now markets await the release of the Federal Reserve's minutes of the July 25-26 meeting on Wednesday as investors assess the chances of a third rate hike this year and tightening of monetary policy.

Silver's glide off a two-month high comes as tensions dissipate over the US-North Korea situation after senior US officials, including CIA director Pompeo, dismissed the possibility of an escalation from words to actual fight on the ground between the two countries.