Silver settled up 1.17% at 45214 despite Comex Silver settled down at 19.63 retreating from a two-month high earlier in the session, as a steadier U. S. equities market and jitters ahead of a key Federal Reserve meeting this week triggered profit taking. Support on MCX seen as rupee fell for a third consecutive session on Monday to its lowest against the dollar since mid-November as a broad emerging market sell-off raised worries foreign investors would pare down their domestic stock and bond holdings. Also the Reserve Bank of India's policy review on Tuesday also kept investors cautious. Although the central bank is expected to keep interest rates on hold, the tone of the statement is being closely eyed, raising expectations of tighter monetary policy this year. However, the metal remains fundamentally stronger compared to its more popular counterpart due to solid investment and physical demand. India's imports of silver were on pace to attain record highs in 2013, with purchases totaling 4,073 tonnes in the January-August period versus 1,921 in the whole 2012. The previous record of 5,048 tonnes was hit in 2008. At the same time holdings in total known silver-backed ETFs climbed 0.64% last week. While stimulus tools such as Fed purchases of Treasury holdings and mortgage debt suppress interest rates to spur recovery, thus weakening the dollar as long as they remain in effect and making gold an attractive hedge. Technically market is under short covering as market has witnessed drop in open interest by -0.92% to settled at 9265 while prices up 523 rupee, now Silver is getting support at 44869 and below same could see a test of 44525 level, And resistance is now likely to be seen at 45498, a move above could see prices testing 45783.

Trading Ideas:

Silver trading range for the day is 44525-45783.

Silver gained as ongoing turbulence in emerging markets boosted the safe haven appeal of the precious metal.

Ongoing turmoil in emerging markets continued to boost gold's safe haven appeal.

Emerging market currencies have been hard hit since the Federal Reserve announced plans last month to begin scaling back its asset purchase program.