Silver on MCX settled down -0.14% at 41372 dropped from the day's high on profit booking while earlier in the prices gained as signs of growing inflation and a steep decline in U.S. equities helped to raise investment demand in the precious metal. Traders also are bracing for a week full of economic data and a two-day meeting of the Fed to gain hints on where prices for the metal may head next. A closely watched reading on the labor market is due on Friday and a two-day meeting of the Fed is set to kick off Tuesday. Both key events, among others, could alter expectations for interest-rate increases and drive the dollar and assets pegged to it like bullion. A reading of U.S. consumer inflation, as measured by the Fed’s preferred metric, personal-consumption expenditures, rose in December to the strongest reading in more than two years, according to data released early Monday. The PCE rose 0.2% in December and the overall annual rate rose to 1.6%, marking the highest rate since September 2014. Moves for the buck and bullion come as Trump has introduced controversial executive orders that aim to restrict immigrants from seven countries—Sudan, Somalia, Iraq, Iran, Yemen, Syria and Libya—entering the U.S. Uncertainty about the implications of the restrictions and confusion about their implementation also were being factored into investment decisions. In the week ahead, markets will be paying close attention to Friday’s U.S. nonfarm payrolls report for January as well as Wednesday’s policy statement by the Fed. Also investors will also be watching central bank meetings in Japan and the UK. Technically market is getting support at 41239 and below same could see a test of 41107 level, And resistance is now likely to be seen at 41564, a move above could see prices testing 41757.

Trading Ideas:

Silver trading range for the day is 41107-41757.

Silver dropped after prices seen supported earlier as political uncertainty created by U.S. President’s move to ban people from seven Muslim-majority countries.

Lackluster U.S. fourth-quarter growth figures also weighed on the greenback as it dampened expectations for a faster rate of interest rate hikes this year.

The market for the precious metal has also been supported by sluggish U.S. economic data released on Friday.