Silver yesterday settled up at 40788 as prices of the silver metal turned sharply higher as investors returned to the market after futures fell to $18.18 a troy ounce, the cheapest level since August 24, 2010 as investors returned to the market to seek cheap valuations after prices fell to the lowest level since August 2010 earlier in the session. Sentiment on the precious metals remains downbeat amid growing expectations the Federal Reserve will begin to taper off its bond-buying program by the end of this year. Moves in the price this year have largely tracked shifting expectations as to whether the US central bank would end its bond-buying program sooner-than-expected. An exit from the stimulus would deal a heavy blow to bullion, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies. However, the precious metal turned sharply higher as traders closed out bets on lower prices after futures moved into oversold territory, a move known as covering a short position. Traders now looked ahead to Friday's highly-anticipated US nonfarm payrolls data for indications of how the recovery in the US labor market is progressing. Any improvement in the US economy could scale back expectations for further easing, putting upward pressure on US yields and boosting the dollar. Technically market is getting support at 40687 and below same could see a test of 40585 level, And resistance is now likely to be seen at 40948, a move above could see prices testing 41107.

Trading Ideas:

Silver trading range for the day is 40585-41107.

Silver settled flat as pressure seen amid fears the U. S. Federal Reserve may wind down its stimulus program.

Upbeat numbers came in wake of a report that revealed that the Chicago purchasing managers' index fell to 51.6 this month

Sales of the U. S. Mint's American Eagle gold coins in June stand at only 47,000 ounces, a fifth of what was sold in all April