Silver on MCX settled up 1.71% at 41339 paring its loss as the U.S. dollar and Treasury yields eased back in the wake of the monthly jobs report. U.S. employers boosted hiring in November and the unemployment rate dropped to a more than nine-year low of 4.6 percent, making it almost certain that the Federal Reserve will raise interest rates later this month. Nonfarm payrolls increased by 178,000 jobs last month, the Labor Department said. The solid gains in employment likely reflect rising confidence in the economy. Data for September and October was, however, revised to show 2,000 fewer jobs created than previously reported. The three-tenths of a percentage point drop in the unemployment rate last month to its lowest level since August 2007 was both the result of more people finding work as well as dropping out of the labor force. The report came on the heels of recent data showing the economy growing at a brisk clip in the third quarter, and gains in consumer spending, inflation, housing and manufacturing early in the fourth quarter. A pullback in wage growth after two straight months of solid increases put a wrinkle in an otherwise upbeat employment report. Average hourly earnings fell three cents, or 0.1 percent, after shooting up 0.4 percent in October. Bullion is highly sensitive to rising interest rates, which make the non-yielding asset less attractive while boosting the dollar, in which it is priced. Technically market is under short covering as market has witnessed drop in open interest by -0.59% to settled at 12169 while prices up 696 rupee, now Silver is getting support at 40745 and below same could see a test of 40150 level, And resistance is now likely to be seen at 41702, a move above could see prices testing 42064.

Trading Ideas:

Silver trading range for the day is 40150-42064.

Silver prices gained paring its loss as the U.S. dollar and Treasury yields eased back in the wake of the monthly jobs report.

U.S. employers boosted hiring in November and the unemployment rate dropped to a more than nine-year low of 4.6 percent.

Nonfarm payrolls increased by 178,000 jobs last month, the Labor Department said.