Silver  jumped nearly 1% and settled at 54483 bouncing from a key support level at 53500 level as investors remained focused on Spain's struggle with it finances and frail banking sector. Spanish government bond yields surged to a six-month high on deepening fears over the country's banking sector, and Italian bond yields broke above the 6 percent danger level. Investors remained worried about Spain, even after the European Union offered it more time to reduce its budget deficit and direct aid to recapitalise distressed banks. Reports that Spain will issue bonds to bolster the banking sector and regional governments when yields in public debt auctions have already spiked to around 7% fueled fears the European debt crisis is heating up in Spain and sent the euro falling and the dollar rising earlier. However, bullion tested support and rose, especially sentiment that China will roll out stimulus measures to spur more growth. In the US on Friday, the government will release the May jobs report, one of the most anticipated of economic indicators in the country. Talk of disappointing hiring data my fuel murmurs of monetary easing to come in the US, which would send gold rising as well. Now technically market is trading in the range as RSI for 18days is currently indicating 44.25, where as 50DMA is at 56148 and silver is trading below the same and getting support at 53836 and below could see a test of 53189 level, And resistance is now likely to be seen at 54854, a move above could see prices testing 55225.

Trading Ideas:

Silver trading range for the day is 53189-55225.

Silver prices rose reversing losses stemming from concerns over Spain.

Bullion tested support and rose, especially sentiment that China will roll out stimulus measures to spur more growth.

Holdings at ishares silver trust gained by 24.14 tonnes to 9643.17 tonnes