Silver dropped as investors took profits after the metal rose toward 64755 earlier in the session but dropped towards the weekly low of 61912 and latter recovered and settled at 63280 with a marginal fall near by -0.82% as trader are closely watched policy statement from the Fed. The Fed is expected to launch QE3 at a two-day policy meeting that would provide a further lift for bullion, which has climbed 7% over the past month on growing hopes for more stimulus measures. The dollar dropped to a 4-month low against a basket of currencies with the QE3 anticipation, and after Moody's warned about a possible US credit rating downgrade. Investors are also eyeing a ruling by Germany's constitutional court on the euro zone's new rescue fund. Legal experts expect the court to rule in favour of the fund. If the Fed announces an open-ended, non-sterilised bond purchase plan, bullion could rally but a disappointing outcome could knock down once again. Holdings of SPDR Gold Trust remained at a near six-month high of 1,293.138 tonnes by Sept. 11, up nearly 3% over the past month. Now technically market is in overbot as RSI for 18days is currently indicating 76.14, and getting support at 61876 and below could see a test of 60473 level, And resistance is now likely to be seen at 64719, a move above could see prices testing 66159.

Trading Ideas:

Silver trading range for the day is 60473-66159.

Silver turned lower as investors took profits after the metal rose toward 64755 ahead of statement from Fed.

U.S. wholesale inventories in July rose by the most in five months, beating forecasts

Holdings at ishares silver trust dropped by 12.06 tonnes to 9791.49 tonnes