Silver settled down -0.68% at 55260 as traders headed to the sidelines ahead of a long U. S. holiday weekend with the threat of U. S. military intervention in Syria lingering. Uncertainty over whether the U. S. will launch missile and air strikes against Syria weakened gold by fueling dollar demand. The dollar rose after U. S. Secretary of State John Kerry said Washington was confident Syria has used chemical weapons in its civil war and appeared to lay out a case for military action though gains were muted after President Barack Obama said no decision on such a move has been taken. Also in the U. S., a widely-watched Chicago purchasing managers' index rose to 53.0 this month from 52.3 in July, in line with expectations. Friday's data rekindled expectations that the Federal Reserve may begin to taper its USD85 billion monthly bond-buying program in September as opposed to later in the year. Monetary stimulus tools such as Federal Reserve asset purchases weaken the dollar by driving down interest rates, and talk of their dismantling strengthens the greenback and weakens prices. Also Friday, the Bureau of Economic Analysis revealed that personal spending rose slightly less than expected in July, expanding 0.1% after an upwardly revised 0.6% increase the previous month. Investors are scrutinizing economic data to gauge the strength of economic recovery to better estimate when the U. S. central bank will begin curbing its $85 billion per month bond-buying programme. Now Silver is getting support at 55053 and below same could see a test of 54847 level, And resistance is now likely to be seen at 55498, a move above could see prices testing 55737.

Trading Ideas:

Silver trading range for the day is 54847-55737.

Silver dropped as traders headed to the sidelines ahead of a long U. S. holiday weekend with the threat of U. S. military intervention in Syria lingering.

Data showing the pace of business activity in the U. S. Midwest rose to 53.0 from 52.3 in July, matching expectations, also pressured prices.

Prices dropped as traders headed to the sidelines ahead of a long U. S. holiday weekend with the threat of U. S. military intervention in Syria lingering.