Silver settled up 1.09% at 51215 as rupee fell to a record low on Monday as the government's steps unveiled last week seemed inadequate to stall the currency's fall. While Silver on COMEX fell for the first time in nine sessions on Monday, as investors cashed out of the market to lock in gains after prices rallied to a 14-week high earlier in the day. Market players were looking ahead to the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program. Moves in the silver price this year have largely tracked shifting expectations as to whether the US central bank would end its quantitative easing program sooner-than-expected. US data on initial jobless claims and the housing sector later in the week will also be closely watched. Market players have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. Stimulus tools such as the Fed's USD85 billion in monthly bond purchases tend to weaken the dollar by driving down interest rates, making gold an attractive hedge while in place. Precious metals have roared back in recent weeks even as US equities have declined on jitters the Fed will move to taper its easing efforts as soon as next month. Technically market is getting support at 50482 and below same could see a test of 49748 level, And resistance is now likely to be seen at 51718, a move above could see prices testing 52220.

Trading Ideas:

Silver trading range for the day is 49748-52220.

Silver gains as investors awaited further indications over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases.

U. S. consumer sentiment ebbed in August and residential construction rose less than expected last month, potentially dimming hopes of an acceleration in economic activity.

Economic data is being monitored by investors to gauge when the U. S. Federal Reserve would begin tapering its commodities-friendly stimulus measures.