Silver yesterday settled up 0.23% at 41146 made cautious gains as investors prepared for the Fed to make its Wednesday announcement on monetary policy, a key driver for the precious metal. Also support seen as Rupee fell for the first session in four on Monday on the back of dollar demand from oil importers and caution ahead of a central bank policy review that may give cues about its stance after recent measures to defend the currency. The RBI is widely expected to keep rates and the cash reserve steady when it unveils monetary policy. Market will keenly watch, instead, if the central bank indicates more measures to stabilise the currency or gives a timeframe for its current action. Silver prices edged higher amid growing sentiment that while the US economy continues to improve, recovery is not going fast enough to prompt the Fed to rush to taper monetary stimulus programs such as its monthly USD85 billion bond-buying program, which has sent gold rising by keeping the dollar weak. While consumer sentiment and housing sales figures have beaten expectations in recent sessions, weekly jobless claims recently disappointed. Earlier Monday, the National Association of Realtors reported earlier that pending home sales in the US fell 0.4% in June, less than an expected 1% decline but below a 5.8% rise the previous month, which cemented expectations that stimulus programs may be around for a while longer. In the week ahead, the Fed is to release its monthly monetary policy statement, which will be closely watched for indications on the future of the central bank's stimulus program. Technically market is getting support at 40703 and below same could see a test of 40259 level, And resistance is now likely to be seen at 41614, a move above could see prices testing 42081.

Trading Ideas:

Silver trading range for the day is 40259-42081.

Silver gains as markets eyed Fed's policy meeting, amid growing uncertainty over the future of the central bank's monetary stimulus program.

European Central Bank and the Bank of England also meet this week and are expected to repeat or refine their previous guidance

Investors will try to glean from the slew of data due out this week any clues to a change in timing.