Silver yesterday settled down at 41517 as uncertainty over the future of the Federal Reserve's stimulus program weighed on appetite for the precious metal. Moves in the silver price this year have largely tracked shifting expectations as to whether the US central bank would end its bond-buying program sooner-than-expected. Comex Silver prices settled down by nearly 1% at USD19.52 a troy ounce on Tuesday after strong US trade data saw investors reassess expectations on when the Federal Reserve may start to taper its asset purchase program. A government report showed that the US trade deficit narrowed by 22.4% to a seasonally adjusted USD34.2 billion in June, the lowest level since October 2009. Investors have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to reduce its bond purchases. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. Also Tuesday, Chicago Fed President Charles Evans said he expected the central bank to begin tapering its asset-purchase program by the end of the year. Silver prices are on track to post a loss of almost 37% on the year, amid speculation the Fed will start to unwind its bond purchasing program in the coming months. Technically market is under fresh selling as market has witnessed gain in open interest by 5.76% to settled at 10131 while prices down -16 rupee, now Silver is getting support at 40994 and below same could see a test of 40472 level, And resistance is now likely to be seen at 41809, a move above could see prices testing 42102.

Trading Ideas:

Silver trading range for the day is 40472-42102.

Silver recovered losses on softer dollar and on market sentiments that despite consensus that end of U. S. monetary of stimulus programs is growing closer

Fed policymakers, who last week voted to continue its bond-buying, next meet on Sept. 17 and 18 to discuss policy.

With physical demand subdued during seasonally soft summer period, investors are closely monitoring economic data from US and wider economic events.