Silver settled down -2.67% at 43220 poised to post its first weekly drop in six weeks on Friday as strong U.S. economic growth boosted global equities and the dollar, hurting the metal's safe-haven appeal. Bullion was also under pressure due to the absence of top buyer China, shut for the Lunar New Year holiday. The Fed said Wednesday that it would reduce its monthly bond buying program by USD10 billion to a total of USD65 billion a month, in a widely anticipated decision. The U.S. central bank said growth signals are encouraging, and the unemployment market shows improvement "on balance". The Fed left unchanged its statement that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the central bank has previously said it would start to consider rate increases. The Fed added it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further. The U.S. is to publish preliminary data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and data on pending home sales. Also subdued demand from China, usually the biggest support for prices took the sheen off the metal's safe-haven appeal, even as investors shied away from emerging markets and equities. Other safe-havens such as the yen gained. Technically market is under fresh selling as market has witnessed gain in open interest by 53.81% to settled at 15346 while prices down -1185 rupee, now Silver is getting support at 42716 and below same could see a test of 42213 level, And resistance is now likely to be seen at 44086, a move above could see prices testing 44953.

Trading Ideas:

Silver trading range for the day is 42213-44953.

Silver dropped after data showed that the U.S. economy expanded in line with expectations in the final three months of 2013

The data showed personal consumption grew 3.3% in the three months ended December 31, the biggest increase in three years.

Fed said that it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.