Silver yesterday settled down -1.95% at 38796 dropped as persistent worries over the Fed's plan to wind down its monetary stimulus. Silver was trading higher on Thursday early session, bouncing off the lowest level since August 2010 after a downward revision to US first quarter growth dampened expectations that the Federal Reserve could begin to unwind its asset purchase program later this year. The metal fell 2 percent on Thursday, as month-end book squaring and relentless liquidation by institutional investors sent bullion prices below $1,200 per ounce for the first time in nearly three years. Bullion, has been sliding since Bernanke laid out a strategy to wind down the bank's $85 billion monthly bond purchases on the back of a recovering economy. Two influential Fed policymakers on Thursday sought to dissuade investors that monetary accommodation was fading any time soon, each going so far as to say markets have misinterpreted the US central bank's intentions. China's central bank is squeezing funds out of the money market, forcing banks to borrow money at historic interest rate levels, but the manoeuvre appears to have been calculated to have limited impact on the real economy. The Indian central bank squeezed gold buyers further on Thursday, ruling out any credit transactions for imports unless they were intended to make jewellery for export, as it looks to rein in a record current account deficit. Technically market is getting support at 38327 and below same could see a test of 37857 level, And resistance is now likely to be seen at 39565, a move above could see prices testing 40333.

Trading Ideas:

Silver trading range for the day is 37857-40333.

Silver dropped as persistent worries over the US Federal Reserve's plan to wind down its monetary stimulus.

Prices declined sharply since Fed said last week U. S. central bank plans to start scaling back its $85 billion monthly bond purchases

Investors turned their attention to U. S. non-farm payrolls data due next week to gain further clarity on the economy and prospects for monetary policy