Silver settled down -1.57% at 54117 on market expectations that the Federal Reserve may taper its monetary stimulus. Moves in silver prices this year have largely tracked shifting expectations as to whether the U. S. central bank would end its bond-buying program sooner-than-expected. Uncertainty over whether the Fed will start tapering its USD85 billion-a-month asset purchase program later this month mounted after data showed that the U. S. economy added 169,000 jobs in August, The report also said that job growth in July was revised down to 104,000 from 162,000, while June's figure was revised down to 172,000 from 188,000. The unemployment rate ticked down to a four-and-a-half year low of 7.3% from 7.4% in July, but this was partially due to more people dropping out of the labor force. The disappointing data saw investors reassess expectations over the timing of a pullback in the Federal Reserve's stimulus program. Silver traders have closely been looking out for U. S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Fed Chairman Ben Bernanke has said that the decision to begin tapering will depend on whether economic data is strong enough. The central bank is scheduled to meet September 17-18 to review the economy and assess policy. Technically market is under long liquidation as market has witnessed drop in open interest by -3.39% to settled at 3736 while prices down -865 rupee, now Silver is getting support at 53773 and below same could see a test of 53430 level, And resistance is now likely to be seen at 54623, a move above could see prices testing 55130.

Trading Ideas:

Silver trading range for the day is 53430-55130.

Silver fell on market expectations that the Federal Reserve may taper its monetary stimulus.

Fed should begin reducing monthly bond purchases at a meeting later this month in order to set monetary policy on a course for "gradual and predictable" normalization

The disappointing report complicates the Fed's decision on whether to scale back its monetary stimulus later this month