Silver may trade 44036-45824 range, support at 44586

Mumbai-India (Jan 20)   Silver settled up 1.33% at 45136 with investors turning to the precious metal after global equity markets trended lower after a government report showed the cost of living in the US increased by the most in six months. Prices rose on Friday against the headwinds of a stronger dollar after fresh U.S. data supported the view the world's largest economy is improving enough to keep the Federal Reserve's stimulus-reducing measures on track. Official data showed that U.S. building permits declined 3% to 986,000 million units in December from 1.017 million units the previous month.

The preliminary Thomson Reuters/University of Michigan consumer sentiment index fell to 80.4 in January from 82.5 in December, defying expectations for a rise to 83.5. Data also showed that U.S. housing starts rose dropped 9.8% and came in at 999,000 units in December from an upwardly revised 1.107 million units in November. Markets were expecting see 990,000 in new housing starts, and the better-than-expected figure boosted the dollar by suggesting fundamental improvements are taking place in the U.S. housing sector, which likely made gold's gains short-lived.

The Fed's bond-purchasing program, in effect since September of 2012, suppresses long-term interest rates to spur recovery, weakening the dollar in the process and making gold an attractive hedge. The market was surprised by news of Deustche Bank withdrawing from gold and silver benchmark setting, or fixing, as German regulators investigate suspected manipulation of precious metals prices by banks. Holdings at ishares silver trust gained by 1.36% i.e. 134.69 tonnes to 10029.22 tonnes from 9894.53 tonnes. Now Silver is getting support at 44586 and below same could see a test of 44036 level, and resistance is now likely to be seen at 45480, a move above could see prices testing 45824.

Trading Ideas:
--Silver trading range for the day is 44036-45824.
--Silver rose with investors turning to the precious metal after global equity markets trended lower.
--U.S. economic recovery is crucial to gauge whether Fed will continue or increase the pace of tapering its bullion-friendly monetary stimulus.
--Holdings at ishares silver trust gained by 1.36% i.e. 134.69 tonnes to 10029.22 tonnes from 9894.53 tonnes.