Silver settled up 1.27% at 43858 as equities looked set to follow the sharp decline on Wall Street and investors worried over U. S. economic growth after weak manufacturing data. U. S. manufacturing activity slowed sharply in January on the back of the biggest drop in new orders in 33 years while construction spending barely rose in December, pointing to some loss of steam in the economy. The report added new order growth fell at its fastest rate in 33 years, with the new orders index dropping to 51.2 from 64.4 in December. The employment index fell from 55.8 in December to 52.3, the weakest since June. Also on Monday, U. K.-based Markit Economics reported that its U. S. manufacturing PMI came in at a three-month low of 53.7 for January, missing expectations for a 53.8 reading. The soft numbers reminded investors that the Fed will trim its USD65 billion monthly bond-buying program on a gradual basis, and won't tighten policy anytime in the foreseeable future. Meanwhile, market players continued to monitor liquidity conditions in emerging markets, such as Turkey and South Africa. Emerging markets economies have been hard hit in recent sessions by worries over the impact of cuts in Federal Reserve stimulus and concerns over a slowdown in China. Investors looked ahead to key U. S. economic data later in the day to gauge the strength of the economy and for further indications on the future course of monetary policy. Technically market is under short covering as market has witnessed drop in open interest by -14.49% to settled at 12094 while prices up 549 rupee, now Silver is getting support at 43140 and below same could see a test of 42423 level, And resistance is now likely to be seen at 44362, a move above could see prices testing 44867.

Trading Ideas:

Silver trading range for the day is 42423-44867.

Silver gained after data showed that manufacturing activity in the U. S. deteriorated to the lowest level since June.

Caution over emerging markets, U. S. economy and Fed's move to taper its stimulus program remain crucial to the metal's moves

Holdings at ishares silver trust gained by 0.66% i. e. 65.84 tonnes to 10095.06 tonnes from 10029.22 tonnes.