Silver prices ended with gains as a U.S. Federal Reserve meeting and jobs data are slated in the week and are expected to set the tone, along with any comments from President Donald Trump. Prices found itself exposed to painful losses after the renewed investor risk appetite from the Trump effect and dollar’s resurgence encouraged sellers to attack the metal incessantly. The Fed releases its latest review of policy with the Fed Rate Monitor Tool showing a nearly 95% think the central bank will hold pat. Investors took note of U.S. Bureau of Economic Analysis figures that said gross domestic product grew 1.9% in the fourth quarter of 2016, disappointing expectations for 2.2% and after a 3.5% growth rate in the three months to September. Separately, the Census Bureau said U.S. durable goods orders fell 0.4% in December, compared to expectations for a 2.6% gain. Core durable goods orders, which exclude transportation items increased by 0.5% last month, in line with expectations. Demand for bullion weakened as sentiment on the greenback improved after Trump suggested the implementation of a 20% tax on Mexican goods to pay for a border wall, sparking concerns of a possible trade war between Mexico and the U.S. as Trump said a meeting to discuss a border wall and trade ties with counterpart President Enrique Peña Nieto would not happen as planned. Some have also suggested that the Trump administration's commitment to higher spending and lower taxes will boost growth, fuelling a rally in cyclical assets such as stocks and industrial metals at bullion’s expense. Technically now Silver is getting support at 40689 and below same could see a test of 39945 level, And resistance is now likely to be seen at 41958, a move above could see prices testing 42483.

Trading Ideas:

Silver trading range for the day is 39945-42483.

Silver prices ended with gains as a U.S. Federal Reserve meeting and jobs data are slated in the week and are expected to set the tone

US GDP grew 1.9% in the fourth quarter of 2016, disappointing expectations for 2.2% and after a 3.5% growth rate in the three months to September.

Holdings at ishares silver trust gained by 0.23% i.e. 23.59 tonnes to 10444.47 tonnes from 10420.88 tonnes.