Silver on MCX settled down -0.29% at 42713 while Comex Silver settled above at $18.02 an ounce as prices received a boost from a weaker dollar after the Federal Reserve indicated support for rate hikes sooner rather than later following the precious metal’s third straight decline. In minutes from the Fed’s Jan. 31-Feb. 1 meeting, Fed members indicated an interest in hiking rates “fairly soon” but noted that the fiscal policy of President Donald Trump was still a wild card. Hints that the Fed will move to raise rates rapidly typically leads to a stronger dollar. That, in turn, usually provides a headwind to dollar-pegged assets including bullion, making them less attractive to buyers using other monetary units. Following the release of the minutes, however, the dollar declined. Lately, bullion prices remained locked in a narrow band as the latest snapshot of the housing market did little to contradict the higher-interest-rate viewpoint. Sales of previously owned homes hurtled to the highest in a decade in January, a sign of durable demand in the face of higher mortgage rates and leaner supply. Now traders noted the minutes from the FOMC that suggested a rate hike "fairly soon." The meeting was the first since Trump took office saw FOMC members report higher levels of confidence in the business community. Many participants expressed the view that it might be appropriate to raise the federal funds rate again fairly soon" if data on jobs and inflation are "in line with or stronger than their current expectations," or if the risk increased that the Fed might overshoot its goals, the meeting summary stated. Technically market is getting support at 42587 and below same could see a test of 42462 level, And resistance is now likely to be seen at 42851, a move above could see prices testing 42990.

Trading Ideas:

# Silver trading range for the day is 42462-42990.

# Silver dropped as traders anticipated new clues on the likelihood of a March U. S. interest rate hike with the minutes from FOMC in focus.

# Many Fed policymakers said it may be appropriate to raise interest rates again "fairly soon" should jobs and inflation data come in line with expectations.

# The minutes showed the depth of uncertainty at the Fed over the lack of clarity on the new Trump administration's economic programme.