Silver on MCX settled down -1.44% at 40834 as investors become increasingly certain that U.S. interest rates will rise this month. Strong U.S. economic data and comments by Federal Reserve officials have reinforced expectations of a March U.S. rate hike. Prices struggled to take advantage of a pull-back in the dollar, after initial jobless claims missed analysts’ forecasts while investors’ expectations of a March rate hike grew ahead of key non-farm payrolls report due to be released on Friday. U.S. Department of Labor said Thursday, initial jobless claims increased by 20,000 to 243,000 in the week ending March 4 from the previous week’s total of 223,000. The softer initial jobless claims data came a day ahead of Friday’s nonfarm payrolls for February, viewed as a critical barometer of the U.S. economy and represents the final key economic data point ahead of the Federal Reserve’s policy meeting on March 14-15. Investors are awaiting non-farm payrolls data on Friday for further clues on the strength of the U.S. economy after Federal Reserve Chair Janet Yellen said last week that the central bank was poised to lift rates, provided that jobs and inflation data held up. Higher interest rates typically pressure bullion prices because they raise the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced. Technically market is under fresh selling as market has witnessed gain in open interest by 1.92% to settled at 12769 while prices down -596 rupees, now Silver is getting support at 40604 and below same could see a test of 40374 level, And resistance is now likely to be seen at 41236, a move above could see prices testing 41638.

Trading Ideas:

Silver trading range for the day is 40374-41638.

Silver prices dropped as investors become increasingly certain that U.S. interest rates will rise this month.

The number of Americans filing for unemployment benefits rose more than expected in the past week.

Strong U.S. economic data and comments by Federal Reserve officials have reinforced expectations of a March increase to U.S. rates.