Silver settled up 0.48% at 44480 after Rupee dropped as dollar strengthened on news the U. S. economy grew much more in the Q2 than anticipated, though a somewhat dovish take on the labor market from the Fed watered down the greenback's gains. While Comex Silver settled at 20.59 retreated for a fourth day heading for a 2.1 percent decline this month as further signs that the U. S. recovery is gaining momentum strengthened the case for higher borrowing costs in the world's largest economy.

Silver sank last year on expectations that the Federal Reserve would trim monthly bond buying, which it did for a sixth time yesterday. Policy makers also said in their July 30 statement that slack in the labor market persisted even as the economy was picking up, repeating that they will keep interest rates low for a considerable time after ending asset purchases. In economic news from the U. S., data released by the Commerce Department showed U. S. GDP to have increased by a more than anticipated 4.0 percent in the second quarter following a revised 2.1 percent decrease in the first quarter.

Market had expected GDP to rise by 3.0 percent, compared to the 2.9 percent drop that had been reported for the previous quarter. Meanwhile, a report from payroll processor ADP showed that employment in the private sector continued to see notable growth in the month of July, increasing by 218,000 jobs, after jumping 281,000 jobs in June. However, it fell short of estimates for an increase of 230,000 jobs. Meanwhile, conflicts in Ukraine and the Middle East continue unabated. Technically market is getting support at 44193 and below same could see a test of 43906 level, And resistance is now likely to be seen at 44650, a move above could see prices testing 44820.

Trading Ideas:

Silver trading range for the day is 43906-44820.

Silver gains on rupee weakness after prices dropped after data showed that U. S. economy grew significantly more than expected in the second quarter.

Fed reaffirmed it was in no rush to raise interest rates, even as it upgraded its assessment of the U. S. economy

US GDP expanded at a 4 percent annual rate after shrinking at a revised 2.1 percent pace in the first quarter.