Silver yesterday settled down -0.42% at 40663 trading in the range since morning session tracking gains across the metals complex after Federal Reserve officials played down fears over an imminent end to the central bank's stimulus program. On Monday, Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, said the central bank was committed to continuing its bond purchase program until the US unemployment rate falls further. Dallas Fed President Richard Fisher also downplayed market jitters over tapering as overdone. Silver prices lost 9% last week after Fed Chairman Ben Bernanke said that the bank could begin tapering asset purchases by the end of 2013 if the economy continues to pick up. Comex silver prices plunged to USD19.31 a troy ounce on June 21, the weakest level since September 2, 2010. 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. Well last week's comments from Federal Reserve Chairman Ben Bernanke about possible tapering of the central bank's USD85 billion-a-month asset-buying program continue to loom large in the commodities pits, it was a solid batch of US data points that pressured gold somewhat on Tuesday. Technically market is getting support at 40340 and below same could see a test of 40016 level, And resistance is now likely to be seen at 41008, a move above could see prices testing 41352.

Trading Ideas:

Silver trading range for the day is 40016-41352.

Silver dropped after Federal Reserve officials played down fears over an imminent end to the central bank's stimulus program.

Dallas Fed President Richard Fisher downplayed market jitters over tapering as overdone.

The precious metal has benefited in the past few years as it was seen as a hedge against the Fed's inflation-inducing policies.