Silver settled down -1.89% at 49009 as the budget deadlock fueled concern a U. S. default could damage the world economy. Silver futures on COMEX slipped 2.5 percent to $21.89 an ounce after climbing to the highest level since Sept. 20 yesterday. Traders had a lot on their minds, with Janet Yellen set to be nominated to lead the U. S. Federal Reserve, ongoing concerns linked to the government shutdown and debt ceiling as well as the release of minutes from the central bank's September meeting. Clearly, bullion has not gotten much of a lift on news that President Obama has nominated Federal Reserve Vice Chairwoman Janet Yellen to replace Ben Bernanke atop the Fed when Bernanke retires early next year. Investors continued to monitor negotiations over a U. S. budget impasse that has kept the federal government shut down since October 1. Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U. S. debt ceiling, which the U. S. Treasury Department has estimated will be reached by October 17. President Barack Obama repeated Tuesday that he is willing to negotiate with congressional Republicans on spending cuts, but only after the government is reopened and the debt limit is raised. Technically market is under long liquidation as market has witnessed drop in open interest by -6.57% to settled at 5421 while prices down -943 rupee, now Silver is getting support at 48433 and below same could see a test of 47857 level, And resistance is now likely to be seen at 49730, a move above could see prices testing 50451.

Trading Ideas:

Silver trading range for the day is 47857-50451.

Silver fell amid ongoing uncertainty over the U. S. government shutdown and the upcoming debt ceiling debate.

Congress faces an October 17 deadline to increase the $16.7 trillion borrowing limit to avert the risk of a default on U. S. debt.

The gold/silver ratio edged off this week's low of 59.22, its weakest in nearly a month, as silver underperformed.