Silver yesterday gained by 0.17% and managed to settled at 56016 level overall prices are still trading in the range of 55600-56500 since last weeks fall, yesterday some support seen from the basemetal and crude's gain which help silver to retested 56291 level as support seen after Spain sold the full targeted amount at a short-term debt sale earlier and after a report showed that German consumer confidence improved for the fifth consecutive month in April. Earlier in the day we have seen pressure mounting on silver tracking global stock markets that rallied on an IMF decision to hike up global growth forecasts. Silver eased off earlier gains it made on reports the IMF adjusted upwards its 2012 global growth forecast to 3.5% in 2012 from a Jan forecast of 3.3%, which sparked an equities rally that saw investors selling safe-harbor dollar positions to get in. On the physical side, an unexpected lowering of interest rates in India could lend some support to demand, which has been notably weak since its govt introduced some changes to the import duty tax in March. This was despite the start of the spring wedding season and ahead of the auspicious Akshaya Tritiya festival next week. Now technically market is trading in the range as RSI for 18days is currently indicating 46.12, where as 50DMA is at 57794 and silver is trading below the same and getting support at 55691 and below could see a test of 55366 level, And resistance is now likely to be seen at 56316, a move above could see prices testing 56616.

Trading Ideas:

Silver trading range for the day is 55366-56616.

Silver prices were steady as stocks rallied on an IMF decision to hike up global growth forecasts.

The euro zone’s debt crisis has done little to bolster appetite for the precious metal in recent months.

Silver eased off earlier gains it made on reports IMF adjusted upwards its 2012 global growth forecast to 3.5% in 2012