Silver settled up 0.14% at 38722 while traded in the range as support seen from Rupee weakness While Comex Silver dropped after a cheery report on U. S. retail sales boosted the dollar by keeping expectations firm that the Federal Reserve will begin hiking interest rates in 2015, possibly sooner than markets were once anticipating. Bullion and the dollar tend to trade inversely with one another. The U. S. Commerce Department reported earlier that retail sales rose 0.7% last month, beating expectations for a gain of 0.4%. October's retail sales growth figure was revised up to 0.5% from 0.3%. Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy. Core retail sales, which exclude volatile transportation items, advanced 0.5% in November, easily surpassing forecasts for a 0.1% increase. Core sales in October rose by 0.4%. Retail sales correspond closely with the consumer spending component of the government's gross domestic product report. Consumer spending accounts for as much as 70% of U. S. economic growth. Thursday's retail sales numbers boosted expectations for the Federal Reserve to hike interest rates earlier in 2015 than once anticipated, which gave the dollar support over most major currencies and softened demand for gold. Elsewhere, the U. S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending Dec. 6 fell by 3,000 to 294,000, beating market calls for and increase to 299,000, which also supported the dollar by boosting optimism over the health of the U. S. labor market. Technically market is getting support at 38372 and below same could see a test of 38021 level, And resistance is now likely to be seen at 39032, a move above could see prices testing 39341.

Trading Ideas:

Silver trading range for the day is 38021-39341.

Silver prices recovered to end with gains as U. S. retail sales bolstered physical demand prospects.

ECB said it allotted 130 billion euros to euro-area banks at a fixed interest rate of 0.15 percent in its targeted longer-term refinancing operation.

The U. S. Commerce Department said that retail sales increased by a seasonally adjusted 0.7% last month, beating expectations for a gain of 0.4%.