Silver settled up 0.66% at 46573 on Wednesday while markets where closed on Thursday on account of Independence Day's holiday. Today Silver is expected to open with good gap as yesterday Silver on COMEX rosed for the seventh consecutive session to hit the highest level since mid-June, as traders looked ahead to the release of a series of U. S. economic data later in the trading day. Investors have closely been looking out for U. S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to reduce its USD85-billion-a-month stimulus program. Any improvement in the U. S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. Moves in the silver price this year have largely tracked shifting expectations as to whether the U. S. central bank would end its bond-buying program sooner-than-expected. The disappointing data raised fresh doubts over whether the economic recovery is strong enough for the Fed to begin tapering its USD85 billion-a-month asset purchase program later this year. Market players now looked ahead to U. S. data on consumer inflation, jobless claims and industrial production, as well as reports on manufacturing activity in New York and Philadelphia. Silver prices are on track to post a loss of almost 27% on the year, amid concerns the U. S. central bank will start to scale back its bond purchasing program in the coming months. Technically market is under short covering as market has witnessed drop in open interest by -6.65% to settled at 7989 while prices up 305 rupee, now Silver is getting support at 46028 and below same could see a test of 45484 level, And resistance is now likely to be seen at 46903, a move above could see prices testing 47234.

Trading Ideas:

Silver trading range for the day is 45484-47234.

Silver rose as holdings in the world's largest silver-backed exchange-traded fund, iShares Silver Trust, rose to a four-month high.

The Fed risks pushing inflation even lower if it tapers bond purchases too aggressively, a senior central banker said

The Department of Labor said producer prices were flat last month, confounding expectations for a 0.3% increase.