Silver settled up 1.59% at 44824 as investors recalibrated their expectations for Federal Reserve policy after a much weaker-than-expected reading on the U. S. labor market. The Bureau of Labor Statistics reported earlier that the U. S. economy added 74,000 jobs in December, well below expectations for a 196,000 increase and below an upwardly revised 241,000 rise the previous month. The U. S. private sector added 87,000 jobs last month, disappointing expectations for 195,000 rise, after an upwardly increase of 226,000 in November. The report also showed that the U. S. unemployment rate fell to 6.7% in December due to a weak participation rate, down from 7.0% in November. Analysts had expected the rate to remain unchanged last month. The numbers weakened the dollar by fueling expectations for the Federal Reserve to trim its USD75 billion monthly bond-buying program at a slower pace than once expected. Fed asset purchases tend to weaken the dollar by suppressing long-term interest rates, thus making gold an attractive hedge as long as monetary stimulus programs remain in place. Markets believe the weak jobs report could prompt the Fed to proceed with caution in tapering its historic monetary stimulus. The Fed last month announced its first cut to the $85 billion monthly bond purchases. President Barack Obama nominated former Bank of Israel Governor Stanley Fischer to be vice chairman of the Federal Reserve, and tapped two others to round out the U. S. central bank's top ranks just as it begins winding down its stimulus. Now Silver is getting support at 44212 and below same could see a test of 43600 level, And resistance is now likely to be seen at 45174, a move above could see prices testing 45524.

Trading Ideas:

Silver trading range for the day is 43600-45524.

Silver rose as investors recalibrated their expectations for Federal Reserve policy after a much weaker-than-expected reading on the U. S. labor market.

The Bureau of Labor Statistics reported earlier that the U. S. economy added 74,000 jobs in December, well below expectations for a 196,000 increase.

Fed asset purchases tend to weaken the dollar by suppressing long-term interest rates, thus making prices an attractive hedge.