Silver settled flat up at 44839 as stocks rallied, but was still trading near its highest in three months on assurances from the new Federal Reserve chair that there would be no abrupt changes to U. S. monetary policy. In her first public comments since becoming Fed chief earlier this month, Janet Yellen emphasized continuity with the policy approach taken by her predecessor, Ben Bernanke. Bullion rallied along with equities on Tuesday, ignoring its inverse correlation with the risky asset class due to some strong technical buying. But on Wednesday, as stocks continued to add to gains, the metal snapped its three-day winning streak on lower safe-haven demand. In her first congressional testimony on Tuesday, Fed Chair Yellen said that the central bank would taper the pace of its asset purchases at future meetings if the economy continued to improve as expected. She added that the pace of the central bank's bond purchases are not on a "preset course", while reiterating that Fed plans to hold interest rates at zero "well past" the time the jobless rate falls below 6.5%. The testimony is coming amid fresh concerns over the outlook for the recovery, following the weakest two-month stretch of U. S. job creation in three years in December and January. The Fed tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month at its last policy meeting. Technically market is under fresh buying as market has witnessed gain in open interest by 1.22% to settled at 12042 while prices up 139 rupee, now Silver is getting support at 44609 and below same could see a test of 44378 level, And resistance is now likely to be seen at 44985, a move above could see prices testing 45130.

Trading Ideas:

Silver trading range for the day is 44378-45130.

Silver gained as comments made by Federal Reserve Chair Janet Yellen on Tuesday continued to support the precious metal.

Fed Chair Yellen said that the central bank would taper the pace of its asset purchases at future meetings if the economy continued to improve

The Fed tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month at its last policy meeting.