Silver prices settled flat although ongoing U.S. political uncertainties continued to support demand for the safe-haven precious metal. Several Fed officials cautioned that Trump's fiscal and tax plans could spur a short-term economic boost that would result in longer-run inflation and debt problems, potentially raising demand for bullion as an inflation hedge. Federal Reserve Chair Janet Yellen said the U.S. economy is doing well and faces no serious obstacles in the short term, with the labor market looking strong. But the greenback was still under heavy pressure since U.S. President-elect Donald Trump failed to offer details on his promises to boost fiscal spending and cut taxes at a highly-anticipated news conference on Wednesday. St. Louis Federal Reserve bank president James Bullard said that the election of Donald Trump has not yet switched the U.S. economy to a new "regime" that requires a quick rise in interest rates, which can remain "fairly low" at least through 2017. With consumer expectations seeing a slight deterioration, the University of Michigan released a report unexpectedly showing a modest drop in U.S. consumer sentiment in the month of January. The University of Michigan said its consumer sentiment index edged down to 98.1 in January from 98.2 in December. With the unexpected decrease, the consumer sentiment index pulled back after reaching its highest level since January of 2004 in the previous month. Technically market is under short covering as market has witnessed drop in open interest by -1.32% to settled at 13544 while prices up 28 rupee, now Silver is getting support at 40630 and below same could see a test of 40372 level, And resistance is now likely to be seen at 41106, a move above could see prices testing 41324.

Trading Ideas:

Silver trading range for the day is 40372-41324.

Silver prices settled flat although ongoing U.S. political uncertainties continued to support demand for the safe-haven precious metal.

James Bullard said that the election of Donald Trump has not yet switched the U.S. economy to a new "regime" that requires a quick rise in interest rates.

The Commerce Department released a report on Friday showing that U.S. business inventories increased by more than expected in the month of November.