Silver settled down -0.32% at 44338 as investors awaited U. S. data to gauge the strength of the economy. Demand for the U. S. dollar was underpinned by expectations that the Fed will continue tapering its stimulus program at the outcome of its next policy meeting on January 29 to USD65 billion from the current USD75 billion. The news fueled expectations for central banks to wind down stimulus programs such as bond purchases going forward, the Federal Reserve especially, as the multilateral lending institution predicted the U. S. economy to grow 2.8% this year, up from an October forecast of 2.6%. Many market participants held firm on their expectations for the Fed to trim its quantitative easing program to USD65 billion from the current USD75 billion at its next policy meeting that wraps up on Jan. 29. Fed bond purchases aim to prop up the economy by suppressing long-term interest rates, thus weakening the dollar as a side effect as investors flock to asset classes like stocks, with gold serving as an inflation hedge of choice. Since the 2008 financial crisis, the Federal Reserve has rolled out three rounds of quantitative easing to prop up the economy. The current program began in September of 2012 and saw the Fed initially buy USD85 billion in Treasury holdings and mortgage debt a month from financial institutions. Technically market is under fresh selling as market has witnessed gain in open interest by 3.87% to settled at 11672 while prices down -142 rupee, now Silver is getting support at 44160 and below same could see a test of 43982 level, And resistance is now likely to be seen at 44556, a move above could see prices testing 44774.

Trading Ideas:

Silver trading range for the day is 43982-44774.

Silver dropped as growing speculation that Fed will make a further reduction in monetary stimulus at its next policy meeting at the end of the month weighed.

Further hurting prices, the International Monetary Fund raised its global growth forecast for the first time in nearly two years

Fed holds its next policy meeting on Jan. 28-29 when markets think central bank will announce a second cut to its $85 billion monthly bond purchases