Silver settled down -0.23% at 49445 as investors eyed the outcome of the Federal Reserve's two-day policy meeting due to begin later in the day.The Fed bank is scheduled to start its two-day policy-meeting later Tuesday, with market analysts expecting the central bank to keep its USD85 billion-a-month asset purchase program on track. Data released on Monday showed that U.S. pending home sales fell 5.6% in September, down for the fourth consecutive month. The disappointing data underlined expectations that the Fed will maintain its stimulus program well into 2014 to support the economy. Silver prices have largely tracked shifting expectations as to whether the Fed would start tapering its USD85-billion-a-month asset-purchase program by the end of the year. US data releases will also be in focus, with reports on retail sales and consumer confidence due later in the day. Market players 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. Hedge funds and money managers raised bullish bets in futures and options of U.S. gold and silver markets for the week ended Oct. 8, the latest report by the Commodity Futures Trading Commission showed. technically market is under long liquidation as market has witnessed drop in open interest by -2.11% to settled at 7003 while prices down -116 rupee, now Silver is getting support at 49062 and below same could see a test of 48679 level, And resistance is now likely to be seen at 49826, a move above could see prices testing 50207.

Trading Ideas:

Silver trading range for the day is 48679-50207.

Silver dropped as anxiety over the future course of U.S. monetary policies sapped investor appetite for the haven asset.

Retail sales in the U.S. declined for the first time in six months in September, fuelling concerns over the U.S. economic recovery.

The core producer price index eased up 0.1% in February, in line with expectations after holding flat in August.