Silver settled at 42341 traded in the range near a two-week low after the U.S. dollar strengthened on indications from the U.S. Fed that it could raise interest rates sooner than expected. A surprisingly strong jobs market recovery could lead the Fed to raise interest rates earlier than it had been anticipating, according to the minutes from the central bank's July 29-30 meeting, though most officials wanted further evidence before changing their view. Overnight, Bullion prices traded lower after the Fed's July policy meeting minutes revealed that rate hikes could come sooner rather than later if the job market continues to improve. The Fed said that the overall economy is improving, though slackness remains in the labor market despite growth, which prompted monetary authorities to continue tapering its asset-purchasing program by only $10 billion per policy meeting. The Fed's stimulus bond-buying program is seen concluding around October, and rate hikes are expected in 2015, though the timing of the latter remains up in the air. While some monetary authorities favored studying more data before deciding, others felt action should come sooner rather than later. "Many participants noted that if convergence toward the Committee's objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated," the minutes released earlier Wednesday read. Technically market is getting support at 42172 and below same could see a test of 42004 level, And resistance is now likely to be seen at 42501, a move above could see prices testing 42662.

Trading Ideas:

Silver trading range for the day is 42004-42662.

Silver seen supported tracking firmness in base metals prices as market players awaited the release of minutes from the Fed’s July policy meeting.

A surprisingly strong jobs market recovery could lead the Fed to raise interest rates earlier than it had been anticipating

Holdings at ishares silver trust gained by 0.44% i.e. 44.77 tonnes to 10272.89 tonnes from 10228.12 tonnes.