Silver settled up 0.31% at 44007 rebounded from an early dip to a six-month low on short covering on Friday, but is still on track for its largest annual loss in 32 years, as the Federal Reserve's plan to scale back its monetary stimulus and expectations of narrower U. S. government deficits have weighed on bullion. The Fed said this week that the U. S. economy was strong enough to scale back its massive bond-buying stimulus, winding down an era of easy money that saw fall of approximately 36% this year. Investors liquidated long positions after the Federal Reserve announced plans to begin tapering its monthly bond-buying program. The Fed said that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress. The move came after months of uncertainty surrounding the future of the Fed's asset-purchase program. When market players started to anticipate the possibility of a reduction in stimulus early in the summer, it resulted in a sharp selloff in silver prices. Meanwhile, on Friday, the Commerce Department said that the U. S. economy expanded by 4.1% in the third quarter, well above initial estimates for 3.6% growth, adding to signs that the economic recovery is deepening. In the week ahead, the U. S. is to release key reports on durable goods orders, new home sales and jobless claims. Trading volumes are expected to remain light due to the Christmas holiday and as many traders already closed books before the end of the year, reducing liquidity in the market and increasing the volatility. Technically market is under short covering as market has witnessed remain unchanged in open interest by 0% to settled at 10767 while prices up 138 rupee, now Silver is getting support at 43617 and below same could see a test of 43227 level, And resistance is now likely to be seen at 44346, a move above could see prices testing 44685.

Trading Ideas:

Silver trading range for the day is 43227-44685.

Silver rose after bargain hunters snapped up nicely, erasing losses stemming from the Federal Reserve's Wednesday decision.

Prices seen under pressure from Friday onwards making it the financial asset hardest hit by the Fed's decision to cut its stimulus.

Gains were limited, however, after better-than-expected U. S. growth rates hit the wire and gave the dollar support.