Silver on MCX settled down -0.24% at 42429 amid rise in dollar and markets priced in the increased possibility the U.S. central bank would raise interest rates this month. Risk appetite also took a hit on rising geo-political tensions in East Asia, as North Korea fired four ballistic missiles. New orders for U.S.-made goods increased for a second straight month in January, suggesting the recovery of the manufacturing sector was gaining momentum.
The market will also await monetary policy decisions from the European Central Bank. The ECB will stay in the background through upcoming elections in key European countries and is only likely to signal a shift away from its ultra-easy monetary policy toward the end of this year or early next.
Francois Fillon fought off a rebellion that had threatened to end his candidacy for the French presidency on Monday as party leaders swung behind the centre-right former prime minister despite allegations that he had misused public funds. In the week ahead, global financial markets will focus on the monthly U.S. employment report due Friday, which could seal the deal for a Fed rate hike later this month.
Besides the employment report, this week's calendar also features U.S. data on factory orders, trade figures, ADP private sector nonfarm payrolls, weekly jobless claims and import prices. Technically market is under long liquidation as market has witnessed drop in open interest by -0.29% to settled at 10994 while prices down -103 rupees, now Silver is getting support at 42267 and below same could see a test of 42104 level, And resistance is now likely to be seen at 42696, a move above could see prices testing 42962.