Silver on MCX settled down -1.73% at 41270 following pressure from strong U.S. economic data and support from Federal Reserve Chair Janet Yellen for higher U.S. interest rates. Federal Reserve Chair Janet Yellen said that running a "hot" economy for an extended period would be a risk. "I think that allowing the economy to run markedly and persistently "hot" would be risky and unwise," Yellen said in remarks prepared for delivery to the Stanford Institute for Economic Policy Research. While there are no signs as yet that the Fed is behind the curve or the economy is in danger of a sudden surge in inflation, she said, "I consider it prudent to adjust the stance of monetary policy gradually over time." In remarks delivered to the Commonwealth Club in San Francisco, Yellen said it would "makes sense" for the U.S. central bank to gradually lift interest rates with the U.S. economy close to full employment and inflation headed toward the Fed's 2% goal. The Fed chief said that she and other Fed policymakers expected the central bank to lift its key benchmark short-term rate "a few times a year" through 2019. That pace could change depending on how the outlook for the economy develops, Yellen cautioned. The Fed indicated last month that at least three rate increases were in the offing for 2017, according to a forecast of interest rates from members of the central bank, known as the dot-plot. Technically market is under long liquidation as market has witnessed drop in open interest by -4.29% to settled at 13109 while prices down -727 rupee, now Silver is getting support at 40846 and below same could see a test of 40421 level, And resistance is now likely to be seen at 41700, a move above could see prices testing 42129.

Trading Ideas:

Silver trading range for the day is 40421-42129.

Silver dropped following pressure from strong U.S. economic data and support from Federal Reserve Chair Janet Yellen for higher U.S. interest rates.

Fed’s John Williams said that while there was uncertainty over the economic outlook, it was no more pronounced than usual.

The European Central Bank stuck to its super-easy monetary policy on Thursday, telling those calling for a tightening.