Silver settled up 0.15% at 41985 gained on Tuesday after a pause in the dollar rally prompted chart-based buying, but pared gains as European stimulus hopes and strong U.S. data pushed investors to equities. Bullion's initial gains were, however, capped by strong U.S. data showing consumer confidence rose more than expected in August, climbing to its highest level since October 2007. Separately, orders for long-lasting U.S. manufactured goods posted their biggest gain on record in July. US stocks edged higher after the data while European shares underperformed gains seen over the past two sessions, which followed comments from the ECB President Mario Draghi that fuelled expectations the central bank will embark on a large-scale asset buying scheme as soon as next week to boost the sagging euro zone economy. Tensions between Russia and Ukraine as well as violence in the Middle East helped lift prices, as the metal is usually seen as an insurance against financial and political risk. Tuesday's mixed data gave the greenback broad support, as it depicted a strengthening U.S. economy, though profit taking sent the U.S. currency lower and nosed up gold prices, as the dollar had advanced in recent sessions on upbeat data and optimistic comments from Federal Reserve Chair Janet Yellen. Geopolitical tensions bolstered gold's safe-haven appeal as well. Russian President Vladimir Putin was set to meet his Ukrainian counterpart, Petro Poroshenko, later Tuesday amid growing tensions in the region. On Monday, Ukraine said an armored column including 10 tanks entered from Russia as the government in Moscow unveiled plans to send a second convoy with humanitarian aid. Technically market is getting support at 41791 and below same could see a test of 41598 level, And resistance is now likely to be seen at 42326, a move above could see prices testing 42668.

Trading Ideas:

Silver trading range for the day is 41598-42668.

Silver prices rose tracking firmness in gold after the U.S. dollar cooled its advance in a bout of profit taking.

Bullion pared some gains as hopes of more stimulus from the ECB and positive U.S. data boosted buying in global equities.

U.S. Commerce Department reported that total durable goods orders surged by 22.6% last month, blowing past expectations for an increase of 7.5%.