Silver prices dropped undermined by a firmer dollar following strong U.S. economic data. The dollar was boosted by data that showed U.S. consumer spending increased in July. The greenback, which also tends to attract safe haven bids in times of market turmoil and political tensions, drew its latest swell of support as investors braced for the next round of the U.S.-China trade conflict.
U.S. President Donald Trump is prepared to quickly ramp up a trade war with China and has told aides he is ready to impose tariffs on $200 billion more in Chinese imports as soon as a public comment period on the plan ends next week.
In US, prices continued their gradual upward trend last month. Its personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, rose 0.2% after edging up 0.1% in June.
Strong consumer spending helped bolster the economy in the second quarter, with gross domestic product rising at a 4.2% annualised rate, the fastest in nearly four years and almost double the 2.2% growth notched in the first quarter.
The US initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 213,000 for the week ended Aug 25, the Labor Department said. Germany’s unemployment rate held steady at 5.2% in August, according to seasonally-adjusted figures from the Federal Labour Agency (BA), matching expectations – Neal Bhai Reports
