Silver settled down by Rs. 500 to settle at 57970 as investors awaited policy decisions by central banks in Japan and the euro zone, while physical buying interest from Asia helped support sentiment. Silver trading in the range of $30.00-$30.80 since last week after investors were spooked by minutes from the latest US Federal Reserve policy meeting, which showed concerns about the side effects of quantitative easing. Monetary stimulus measures taken by central banks in the US and Europe helped drive gold to its twelfth year of gains in 2012, as investors worried about the debasement of paper currency fled to hard assets. The Bank of Japan will consider easing monetary policy again this month, while the European Central Bank is expected to keep interest rates unchanged at a meeting on Thursday. Strong physical buying interest from Asian countries, including top two gold consumers India and China, is likely to keep supporting gold prices, although the lack of fresh momentum will make it hard for gold to push significantly higher. Meanwhile premiums on gold shipments to India jumped to their highest level in two months on Tuesday as traders rushed to place orders for the metal ahead of an expected rise in import duty, even as gold refiners overseas hurried to keep pace. Also Holdings of iShares Silver Trust, the world's biggest silver-backed ETF, rose to 10,112.22 tonnes on Jan 7, the highest since May 2011. Now technically market is getting support at 57651 and below could see a test of 57331 level, And resistance is now likely to be seen at 58344, a move above could see prices testing 58717.

Trading Ideas:

Silver trading range for the day is 57331-58717.

Silver ended lower tracking weakness in base meals and crude prices as the dollar's strength sapped demand

Failure to reach agreement could mean a U. S. debt default or a downgrade in the U. S. credit rating

The metal market will now closely monitor remarks from meetings of both BOE and ECB