Silver settled at 44269 given up it's earlier gains as investors remained focused on the U.S. Fed's monetary policy announcement, due Wednesday. The Fed is widely expected to slash its asset purchases by another $10 billion, cutting the size of the program down to $25 billion per month. Although the interest rate decision is a foregone conclusion, markets will be paying close attention for clues if the Fed will tighten sooner than expected. Fed Chairman Janet hinted as much when meeting with Congress earlier in the month, but so far the Fed's official statement has refrained from pushing up the timeline on rate hikes despite an improving economy. The Fed highlights a hectic week on the economic front, as traders will also be treated to the U.S. jobs report for July and second quarter GDP data along with a flurry of other releases. Gold ended flat, with focus on the U.S. Fed's monetary policy announcement later in the week, with continued concerns over the geopolitical tensions in Libya, Ukraine and Gaza. The Conference Board said its consumer confidence index surged up to 90.9 in July from an upwardly revised 86.4 in June, reaching its highest level since hitting 95.2 in October 2007. Bullion, seen as a safe-haven asset, has benefited from tensions between the West and Russia. U.S. and European leaders agreed on Monday to impose wider sanctions on Russia's financial, defence and energy sectors. The new sanctions are aimed at increasing the pressure on Russian President Vladimir Putin after a Malaysian airliner was shot down over territory held by pro-Moscow rebels in eastern Ukraine. Technically market is getting support at 44056 and below same could see a test of 43843 level, And resistance is now likely to be seen at 44566, a move above could see prices testing 44863.

Trading Ideas:

Silver trading range for the day is 43843-44863.

Silver was steady to higher as investors bought ahead of Federal Reserve interest rate announcements later Wednesday that will set market direction.

The metal was also pressured by US dollar, which hovered at a six-month high on expectations of strong economic data and a hawkish tone from the Fed.

Fed will make a statement later today, with markets watching for clues on when the U.S. central bank will begin increasing interest rates.