Silver traded in the range ans settled with a marginal fall of Rs.61.00 as investors remained sidelined amid mounting concerns over Spain’s fiscal health and ahead of weekend elections in Greece. Investors eyed an Italian govt bond auction later in the day, amid growing fears the country will be the next euro zone member to require a bailout. Bullion look to get support as investors hung on to hopes for action by global central banks and other authorities to stimulate growth and boost the world economy. Chicago Fed Reserve Bank President reiterated his support for additional monetary stimulus from the central bank, ahead of next week's meeting of the FOMC. However, traders were reluctant to open fresh positions amid growing concerns over rising borrowing costs in Spain and Italy, as well as jitters ahead of weekend elections in Greece, which could determine the course of the country’s future in the euro zone. Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal in recent months. Now technically market is trading in the range as RSI for 18days is currently indicating 50.56, where as 50DMA is at 55330 and silver is trading below the same and getting support at 54778 and below could see a test of 54540 level, And resistance is now likely to be seen at 55311, a move above could see prices testing 55606.
Silver trading range for the day is 54540-55606.
Silver dropped in range bound as investors remained sidelined amid mounting concerns over Spain’s fiscal health
Silver is facing an ongoing supply surplus and weak investor demand
Silver mine supply has continued to increase as mining companies strive to capture prices that are high by historic comparison