Silver settled down -1.86% at 44526 as investors awaited the release of the minutes of the Fed’s December meeting on Wednesday. Market players looked ahead to key U.S. economic data later in the week to gauge if the U.S. economy will be strong enough to allow the Fed to continue withdrawing support through 2014. The U.S. ISM said its non-manufacturing PMI fell to 53.0 in December from 53.9 in November. Market were expecting the index to increase to 54.5. The ISM said the new orders index contracted for the first time since July 2009, falling to 49.4. Investors were turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for further indications on the possible timing of reductions in Fed stimulus. The U.S. central bank will reduce its bond-buying program by USD10 billion a month starting in January. Last week Silver slumped to the lowest level since June on Wednesday but alike gold it managed to recover losses in the following session and finished the week with a 3.73% gain. Silver’s advantage against its more expensive peer remained in the stronger Indian demand after several consecutive increases in import duties on the precious metals. India silver imports more than doubled in the first half of 2013, reaching about 3,000 tonnes compared to 1,900 tonnes in the whole 2013. Technically market is under fresh selling as market has witnessed gain in open interest by 5.74% to settled at 9918 while prices down -844 rupee, now Silver is getting support at 44059 and below same could see a test of 43592 level, And resistance is now likely to be seen at 45284, a move above could see prices testing 46042.

Trading Ideas:

Silver trading range for the day is 43592-46042.

Silver dropped after official data showed that the U.S. trade deficit narrowed to a four-year low in November

Investors applauded the data, which weakened prices, but remained cautious ahead of the release of the Fed’s December meeting minutes on Wednesday

Fed is currently buying USD75 billion in Treasury holdings and mortgage debt a month to spur recovery by suppressing long-term borrowing costs