Silver settled up 0.35% at 41951 as support seen from Comex Silver which settled above 19.03 hold near to a three-month low as the dollar strengthened and as signs of progress toward peace in Ukraine reduced the need for haven assets. Rupee saw its biggest single-day decline in more than a month on Tuesday as investors covered short dollar positions following a Federal Reserve study, while losses in the domestic share market also hurt sentiment.

While Commodities were broadly under pressure as the dollar rose on optimism the U. S. economy is growing in line with expectations that the U. S. central bank may begin raising interest rates next year. Political and economic uncertainties in Europe have helped the dollar to its highest in a year, which in turned has pushed gold lower. A referendum on Scottish independence from the United Kingdom takes place later this month. Calls for the Federal Reserve to hike U. S. interest rates have also kept bullion in check.

Silver is set for its first quarterly loss this year on signs that the U. S. economy is gaining pace, spurring the speculations and possibilities for the Fed to raise its benchmark interest rate for the first time since 2006. Investors were also eyeing geopolitical tensions over Ukraine. A ceasefire agreed between Ukraine and pro-Russian rebels last week has weakened safe-haven bids for bullion, though each side accused the other of sporadic shelling. Russia signaled it might ban Western airlines from flying over its territory as part of an "asymmetrical" response to new European Union sanctions over the Ukraine crisis. Technically market is under short covering and getting support at
41791 and below same could see a test of 41630 level, And resistance is now likely to be seen at 42106, a move above could see prices testing 42260.

Trading Ideas:

Silver trading range for the day is 41630-42260.

Silver prices are slightly higher lifted by some bargain hunting after recent losses.

Calls for the Federal Reserve to hike U. S. interest rates have also kept bullion in check.

Investors were also eyeing geopolitical tensions over Ukraine.