Silver tilts lower, shrugs off dollar drop from 2-year high

Silver futures tilted lower in the Asian market today, to bounce from the highest since September 30, 2016, shrugging off dollar's drop from its highest since May 12th, 2017, on the threshold of economic data releases today by the Eurozone economies and the US economy, after the recent developments in the US-China trade talks.

As of 05:59 GMT, silver futures (December delivery) fell by 0.05% to $18.19 an ounce, from the opening of $18.20, after opening today on rising price gap as it closed yesterday at $18.17, as the dollar index fell by 0.01% to 98.62 points from the opening of 98.63.

The markets are anticipating the release of Germany's final CPI reading, which is expected to contract by 0.2%, unchanged from the initial reading for August vs. a growth by 0.5% in July, in addition to the French CPI reading, which is expected to grow by 0.5% vs. a contraction of 0.2% in July.

With the release of Italy's unemployment rate for Q2, which may decline to 10.0% vs. 10.4% in Q1, in addition to the release of the European industrial output reading, which is expected to fall to 0.1%, and the annual reading of the same index is expected to fall by 1.3% vs. 2.6%.

The markets are also anticipating the ECB decisions and Governor Mario Draghi's press conference later today, with forecasts for the ECB to cut interest rates to a negative range and to announce quantitative easing policies to to stimulate the european economy.

Otherwise, the US economy will release its CPI reading, with forecasts a rise by 0.1% vs 0.3% in July, with the core reading, which may fall by 0.2% vs. 0.3%, while the annual reading of the same index may grow by 1.8%, and the annual core reading is expected to rise by 2.3% vs. 2.2%.

In addition to the weekly reading unemployment claims index, which is expected to fall by 2 thousands to 215 thousands orders vs 217 thousands in the previous reading, while investors claims index is expected to rise by 13 thousands to 1,675 thousands vs. 1,662 thousands.

US President Trump announced via his official Twitter account, the delaying of the $250 billion tariffs increase on Chinese imports from 25% to 30% for nearly two weeks in a goodwill gesture, until October 15th.

Trump said that the Chinese Vice Premier Liu He requested that, and especially that the People's Republic of China will celebrate its 70th anniversary on October 1st, they agreed to delay the $250 billion tariffs increase on Chinese imports from until October 15th.

Which comes after the Chinese Ministry of Finance announced on Wednesday that 16 US products would be exempted from 25% tariffs that were imposed since last year on animal food and oil products, with a 1-year exemption from September 17th.

Bearing in mind that these developments have improved investors' risk appetite and raised the market's hopes of resolving the trade war, ahead of the next round of talks in Washington early next month, while analysts remain skeptical that the two sides will reach an agreement in that upcoming round.

President Trump also renewed his criticism of the Fed and its governor Jerome Powell yesterday, and demanded that the rate be cut to zero levels or below, ahead of its meeting on 17-18 of September in Washington, as the bank's committee members are expected to reveal their forecasts on growth, inflation and unemployment, as well as the future of the short-term interest rates for the next three years.