Silver settled down -1.48% at 50459 as investors cashed out of the market to lock in gains after prices rallied to a 14-week high on Monday to the biggest weekly advance since September 2008. The recent rally prompted some investors to sell their position on profit taking and lock in gains. Pressure seen amid ongoing uncertainty over whether the Federal Reserve will soon begin tapering its bong-buying program continued to weigh on sentiment. Investors remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program. Moves in the silver price this year have largely tracked shifting expectations as to whether the US central bank would end its quantitative easing program sooner-than-expected. US data on initial jobless claims and the housing sector later in the week will also be closely watched. Market players have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. Indian traders said they will start importing gold again over the next week, after the county's central bank clarified a rule that stopped the flow of the precious metal into the top gold consumer at the end of July. Technically market is under long liquidation and getting support at 49352 and below same could see a test of 48244 level, And resistance is now likely to be seen at 51383, a move above could see prices testing 52306.

Trading Ideas:

Silver trading range for the day is 48244-52306.

Silver dropped as the recent rally prompted some investors to sell their position on profit taking and lock in gains.

The focus has now shifted to looking for further signals on Fed's stimulus measures when the U. S. central bank

Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.