Silver yesterday settled down -2.69% at 39568 against -5% fall in international to hit the lowest level since August 2010, amid concerns the Fed could taper down its bond purchases amid increasing signs of a recovery in the US economy. Moves in the silver price this year have largely tracked shifting expectations as to whether the US central bank would end its bond-buying program sooner-than-expected. US consumer confidence rose to highest level since January 2008 in the current month, data on Tuesday showed, while another report showed that US new home sales rose to an almost five year high May. A separate report showed that US durable goods orders rose unexpectedly in May. Silver prices lost 9% last week after Bernanke said that the bank could begin tapering asset purchases by the end of 2013 if the economy continues to pick up. Later in the day, the US Commerce Department is scheduled to release the third estimate of GDP for the first quarter. In US economic news published Wednesday, the US Commerce Department said US GDP grew 1.8% in the first quarter, well below the previous estimate of 2.4% growth. Only the home construction and government readings were not revised downward. That report sent US stocks soaring on speculation it was enough to prevent the Fed from immediately tapering its $85 billion-a-month easing program. Traders now view declines in the precious metals as breeding more declines and massive withdrawals from ETP such as the SPDR Gold Shares and iShares Silver Trust are believed to be making matters worse for futures prices. Technically market is getting support at 38748 and below same could see a test of 37928 level, And resistance is now likely to be seen at 40465, a move above could see prices testing 41362.

Trading Ideas:

Silver trading range for the day is 37928-41362.

Silver tumbled amid concerns the Fed could taper down its bond purchases amid increasing signs of a recovery in the U. S. economy.

The data showed personal consumption grew 2.6% in the first quarter, missing forecasts for a 3.4% increase.

Moves in prices this year have largely tracked shifting expectations as to whether U. S. would end its bond-buying program sooner-than-expected.