Silver gained 0.27% to settle at 52890 despite of uncertainty in the market after Fed Chief Ben Bernanke's negative assessment of the US economy. Knocking the precious metal lower, Bernanke delivered a negative assessment of the outlook for the US economy, saying growth had lost momentum in the first half of the year and added that efforts to reduce the US unemployment rate were progressing "frustratingly" slowly. However, he stopped short of indicating whether the Fed would embark on a third round of quantitative easing to stimulate the economy, but reiterated that the central bank was prepared to take further action to support the economic recovery, if necessary. Markets exhibited a muted reaction to data saying that core consumer price inflation in the US rose 0.2% in June, broadly in line with market expectations, while prices including food and energy costs were flat. Moves in the bullion price this year have largely tracked shifting expectations as to whether the US central bank would pump more money into the financial system. Now technically market is getting support at 52483 and below could see a test of
52075 level, And resistance is now likely to be seen at 53185, a move above could see prices testing 53479.
Silver trading range for the day is 52075-53479.
Silver ended firm as investors covered short positions taken on disappointment that Bernanke did not hint at new stimulus measures.
There are also expectations in the market that China will cut its banks' reserve requirement ratio
Bernanke stopped short of indicating whether Fed would embark on third round of QE to stimulate economy