Silver settled down -0.13% at 42277 while recovered from the day's low as prices rose on Wednesday, as lingering tensions over Ukraine and a weaker dollar prompted bargain hunting and short covering after bullion prices earlier fell to a 2-1/2-month low. Prices rebounded after a spokesman for President Putin subsequently said he had not agreed to a ceasefire as Russia was not party to the conflict but added that the two leaders had "discussed how to end the conflict". Meanwhile, investors were looking ahead to the latest U.S. employment report, due for release on Friday, for further indications on the strength of the recovery in the labor market, a key factor in deciding the future path of monetary policy. Market players are also awaiting the European Central Bank's policy meeting on Thursday amid mounting expectations that the bank will announce quantitative easing measures as a way to shore up growth and stave off deflation. The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, hit a 13-month high of 83.07 earlier in the day, before trimming gains to last trade at 82.93. While Silver corrected with basemetals after the data released earlier in the week showed that factory growth in China slowed last month, indicating a recovery in the broader economy remains fragile and may need further government stimulus. Technically market is under fresh selling as market has witnessed gain in open interest by 4.85% to settled at 10443 while prices down -53 rupee, now Silver is getting support at 42081 and below same could see a test of 41884 level, And resistance is now likely to be seen at 42455, a move above could see prices testing 42632.

Trading Ideas:

Silver trading range for the day is 41884-42632.

Silver prices ended with small losses as brighter prospects for the U.S. economy continues to weighed despite of the Ukraine crisis

Prices seen pressure by more encouraging economic news including rising new orders for U.S. factory goods and latest Beige Book report on business activities.

Investors were waiting for a ECB meeting later in the day to see whether it will deliver a fresh round of policy stimulus.