Silver settled up 3.35% at 45348 tracking Comex Silver's gains which settled at 19.99 trading near its highest in two weeks after gaining 3.5 percent in the previous session on Thursday to kick off the New Year with strong gains as investors returned to the market to seek cheap valuations in wake of recent losses. Trading volumes are expected to remain light due to the holiday period, reducing liquidity in the market and increasing volatility, which can help exaggerate market moves.

Silver prices ended 2013 with a loss of nearly 37%, its worst annual decline since 1981, as solid U. S. economic data underlined expectations the Federal Reserve will begin curbing stimulus. Investors expected gains to be short lived as data released earlier kept expectations strong the Federal Reserve will continue to taper its USD75 billion in monthly asset purchases as the year progresses.

The U. S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending Dec. 28 declined by 2,000 to a seasonally adjusted 339,000. Market had expected U. S. jobless claims to fall by 7,000 to 334,000 last week from the previous week's revised total of 341,000, though investors still applauded the decrease. The Institute for Supply Management reported that its purchasing managers' index dipped to 57.0 last month from 57.3 in November, in line with expectations.

The Fed has said it will pay close attention to data when deciding on the fate of monetary stimulus programs, technically market is under short covering as market has witnessed drop in open interest by -15.1% to settled at 9500 while prices up 1472 rupee, now Silver is getting support at 44398 and below same could see a test of 43449 level, And resistance is now likely to be seen at 45898, a move above could see prices testing 46449.

Trading Ideas:

Silver trading range for the day is 43449-46449.

Silver prices rallied sharply to kick off the New Year with strong gains as investors returned to the market to seek cheap valuations in wake of recent losses.

Sharp losses in the equity market prompted funds to buy bullion after the metal's annual decline.

Data showed that the number of people who filed for unemployment assistance in the U. S. last week fell less-than-expected.