Silver settled down -1.64% at 41270 ended lower for a fourth straight session on Thursday, after data from the U.S. showed initial claims for unemployment benefits rose more than expected last week, fueling expectations the Federal Reserve would tone down its hawkish stand on hiking interest rates. Heavy profit-taking in metals weighed down on prices, and silver fell for a second straight day to hit a 14-month low. Prices fell even though U.S. President Barack Obama authorized air strikes against Islamic State and more sanctions on Russia will be unveiled on Friday. Safe-haven demand has faded after Ukraine said on Wednesday Russia had removed the bulk of its forces from its country. In addition, market participants were anticipating a more hawkish stance at the Federal Reserve's policy meeting next week after a study from the San Francisco Fed released on Monday showed that investors underestimated the speed at which the Fed might raise rates. The dollar index was little changed against a basket of major currencies on Thursday, but stayed near a 14-month high set earlier this week and on track to post its ninth consecutive week of gains. Safe-haven bids for bullion were also lower after Ukraine's president said that Russia had removed the bulk of its forces from his country, raising hopes for a peace drive now underway after five months of conflict in which more than 3,000 people have been killed. Technically market is under fresh selling as market has witnessed gain in open interest by 18.87% to settled at 12763 while prices down -686 rupee, now Silver is getting support at 41005 and below same could see a test of 40741 level, And resistance is now likely to be seen at 41754, a move above could see prices testing 42239.

Trading Ideas:

Silver trading range for the day is 40741-42239.

Silver prices dropped as expectations for higher U.S. interest rates continued to dampen sentiment for the precious metal.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits increased by 11,000 to 315,000 last week.

Holdings at ishares silver trust gained by 0.44% i.e. 46.24 tonnes to 10454.90 tonnes from 10408.66 tonnes.