Silver yesterday settled down -2.11% at 40154 as the dollar rose against major currencies after Bernanke said the Fed would likely reduce its $85 billion monthly purchases of Treasuries and mortgage-backed securities later in 2013, halting QE altogether by mid-2014. Bernanke told Congress there is no "preset course" and that any decision to reduce its bond-buying program will depend on how the economy performs. He said the Fed will maintain or increase those purchases if the economy deteriorates, and scale back the program should the economy improves more than the Fed expects. His remarks triggered worries over precious metal market and pushed the US dollar index higher. US stock market rallied, while commodity prices fell. The market overnight was focused on Bernanke's testimony before the House Financial Services Committee. He defended for easing policies again, and insisted that the Fed will likely stop bond purchasing plan in mid-2014, with unemployment rate around 7% by then, but emphasized monetary policies will also depend on economic data. The Fed released its Beige Book saying US economy continued to grow mildly during June and early July, and manufacturing activities in most US regions continued to expand, with manufacturing orders, sales or output increasing. That triggered market concerns that the Fed will scale back asset purchasing at anytime, pushing up the US dollar index to close up
0.23%, and weighing down metals prices. Bernanke will continue to testify before the Senate today. Technically market is getting support at 39524 and below same could see a test of 38894 level, And resistance is now likely to be seen at 41191, a move above could see prices testing 42228.

Trading Ideas:

Silver trading range for the day is 38894-42228.

Silver settled down as dollar rose after Bernanke said Fed would likely reduce its $85 billion monthly purchases of Treasuries later in
2013

Bernanke said that he left open the option of changing stimulus exit plans if the economic outlook grew worse.

Bernanke defended for easing policies again, and insisted that the Fed will likely stop bond purchasing plan in mid-2014