Silver settled down -0.9% at 43317 despite supportive data from US which reveled that U. S. retail sales figures disappointed markets, which reminded investors the Federal Reserve won't rush to tighten monetary policy. Silver settled down while Gold recovered after the U. S. Commerce Department said that retail sales were little changed last month, disappointing expectations for a 0.2% increase. Core retail sales, eased up by a seasonally adjusted 0.1% in July, below forecasts for a 0.4% increase. Core sales correspond most closely with the consumer spending component of the government's GDP report. Meanwhile, in Ukraine, a Russian convoy of 280 trucks carrying humanitarian aid headed for the border amid Western warnings against using help as a pretext for an invasion. Elsewhere, the U. S. sent about 130 additional military personnel to Iraq on Tuesday, after recently launching air strikes targeting jihadi militants from the ISI group in the northern part of the country. Silver dropped further tracking weakness from basemetals as disappointing Chinese economic data fuelled concerns over the health of the world's second largest economy. Official data released earlier showed that industrial production in China rose at an annualized rate of 9% in July, in line with forecasts and slowing from an increase of 9.2% a month earlier. Fixed asset investment, increased 17.0% in the January-July period, below expectations for a gain of 17.4% and slowing from 17.3% in the January-June period. Technically market is under fresh selling and getting support at 42981 and below same could see a test of 42644 level, And resistance is now likely to be seen at 43765, a move above could see prices testing 44212.

Trading Ideas:

Silver trading range for the day is 42644-44212.

Silver prices seen under pressure tracking weakness in base metals prices as investors remained cautious after downbeat data from China.

Positive U. S. economic data has sparked speculation that Fed could raise interest rates sooner than expected.

Bullion investors will continue to monitor U. S. data, as the strength of economy dictates the pace at which Fed tightens monetary policy.