Silver settled down -1.21% at 44480 on speculation about further cuts to the U. S. Federal Reserve's stimulus measures and an improving outlook for the global economy. The International Monetary Fund raised its global growth forecast for the first time in nearly two years, saying fading economic headwinds should permit advanced nations to pick up the mantle of growth from emerging markets. Investors were reluctant to take big positions in bullion a week ahead of a U. S. Federal Reserve policy meeting, when it could announce another cut to its bond-buying stimulus. The Fed's Federal Open Market Committee (FOMC) meets on Jan. 28-29. In its last policy meeting in December, the U. S. central bank decided to cut its historic bond-buying stimulus by $10 billion to $75 billion in monthly purchases. The bond purchases had bolstered gold's position as a hedge against inflation and a weak economy, pushing prices to an all-time high of $1,920 in 2011. However, with an economic recovery underway, prices have fallen 35 percent from those peaks. Many market participants expect the Fed to trim its quantitative easing program to USD65 billion from the current USD75 billion at its next policy meeting on Jan. 29. Fed bond purchases aim to prop up the economy by suppressing long-term interest rates, thus weakening the dollar as a side effect as investors flock to asset classes like stocks, which makes gold an attractive inflation hedge. Technically market is under fresh selling as market has witnessed gain in open interest by 13.07% to settled at 11237 while prices down -544 rupee, now Silver is getting support at 44108 and below same could see a test of 43735 level, And resistance is now likely to be seen at 44886, a move above could see prices testing 45291.

Trading Ideas:

Silver trading range for the day is 43735-45291.

Silver dropped as growing speculation that Fed will make a further reduction in monetary stimulus in the near-term dampened the safe heaven appeal.

Signs of a better U. S. economy and expected Fed stimulus trimming will weigh on bullion's investment appeal as a hedge against inflation.

The Fed is on track to trim its bond-buying program for the second time in six weeks as a lackluster December jobs report failed to diminish Fed's expectations for solid U. S. economic growth