Silver powers up as dollar hits seven-week low

Silver futures rose nearly one percent in American trade as the dollar index hit July 31 lows, following earlier data from the US, the world's largest economy. 

As of 06:20 GMT, silver futures due in December rose 0.67% to $14.28 an ounce, while the dollar index slipped 0.10% to 94.55 against a basket of major rivals. 

Earlier US data showed housing starts surged 9.2% to an annualized 1.282 million units in August, compared to a 0.3% dip in July to 1.174 million, beating estimates of a 5.7% increase. 

Conversely, building permits fell 5.7% last month to 1.229 million, compared to a 0.9% increase in July to 1.303 million, while analysts expected a 0.5% increase to 1.310 million, as the current account deficit shrank to $101 billion from $122 billion in the first quarter. 

US President Donald Trump warned that Canada is taking advantage of current trade policies, adding that Canada imposes 300% tariffs on US diary products, which he demands to change in the negotiations for a new deal. 

An economic adviser for the White House said that administration will go on and make a trade deal with Mexico without Canada if the later failed to respond to negotiations by the end of the month. 

Yesterday, the White House announced new 10% tariffs on $200 billion worth of Chinese imports, to be increased to 25%, after the US already imposed 25% tariffs on $50 billion worth of Chinese imports, with China retaliating with 5-10% tariffs on $60 billion worth of US products. 

President Donald Trump threatened to impose new tariffs on $267 billion worth of Chinese imports if Beijing retaliated to the latest ones. 

US trade secretary Wilbur Ross said China "is out of bullets" to retaliate against US tariffs, noting that the measures are intended to change Chinese behavior, with close studying to guarantee limited increases to inflation. 

China filed another complaint against the US to the World Trade Organization, which isn't the first time China has done such a move.