Silver on MCX settled up 0.86% at 40688 as dollar dropped and as the precious metal continued to recover from its selloff into the end of last year. After reporting a sharp increase in new orders for U. S. manufactured goods in the previous month, the Commerce Department released a report showing that factory orders pulled back in the month of November. The Commerce Department said factory orders tumbled by 2.4 percent in November after spiking by a revised 2.8 percent in October. The Federal Reserve should consider trimming its $4.5 trillion balance sheet to help raise interest rates more quickly and reduce the negative impact on the economy of a stronger dollar, Eric Rosengren, president of the Boston Fed, said on Monday. Recovery from the economic crisis is "largely done," and officials should now turn to addressing longer-term issues like how to boost productivity, Atlanta Federal Reserve bank president Dennis Lockhart said on Monday. Lockhart said he still felt the Fed may only need to raise rates twice this year. The outlook for U. S. rates may become even clearer when Chair Janet Yellen appears at a webcast town hall meeting with educators on Thursday. A focus for the week will be a news conference on Wednesday at which Trump may give more details about the policies he will seek to implement after he takes office on Jan. 20. In the week ahead, investors will be looking ahead to U. S. economic reports, particularly Friday’s retail sales figures for December. Technically now Silver is getting support at 40346 and below same could see a test of 40005 level, And resistance is now likely to be seen at 40904, a move above could see prices testing 41121.

Trading Ideas:

# Silver trading range for the day is 40005-41121.

# Silver gained as dollar dropped and as the precious metal continued to recover from its selloff into the end of last year.

# The Labor Department said the U. S. economy added 156,000 jobs in December, falling short of economists forecast for jobs growth of 178,000.

# The report showed that the annual rate of wage growth rose to 2.9% in December from a year earlier, the strongest since 2009.