Silver yesterday settled up 2.57% at 41531 as investors looked ahead to the release of key US economic data to gauge the strength of the US economy and the need for further stimulus from the Federal Reserve. Support seen as rupee slumped on Wednesday to approach a record low, falling for a third consecutive session, as fears of continued foreign selling kept the focus on how to finance the country's record CAD. The US was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims one day ahead of schedule, as well as data on the trade balance. In addition, the ISM was to produce a report on US service sector activity. Market players also 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 was likely to reinforce the view that the Federal Reserve will begin to taper its bond purchase program in the coming months. 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. Bernanke said last month the US economy was recovering strongly enough for the bank to begin tapering its stimulus in the next few months, and possibly end the programme in mid-2014. However, the exact timing of the tapering is still not clear. Markets are awaiting US nonfarm jobs data later this week for clues on the strength of the world's biggest economy. As two senior Fed official said on Tuesday that the bank's monetary policy to support the economy will likely be warranted for some time to come. Technically market is getting support at 40835 and below same could see a test of 40139 level, And resistance is now likely to be seen at 42002, a move above could see prices testing 42473.

Trading Ideas:

Silver trading range for the day is 40139-42473.

Silver ended higher holding on to gains following the release of a flurry of U. S. employment data.

Payroll processor ADP said the U. S. private sector added 188,000 jobs in June, more than expectations.

The yield on Portugal's 10-year government bond surged to 8.01%, from 6.539% after the country's Finance Minister Gaspar resigned.