Silver prices fell nearly Rs.-267.00 to settled at 52905 level before that we have seen a rally towards 53519 level but bullion investors continued to unwind bullish bets due to a lack of more aggressive actions by the ECB and US Fed to boost growth. ECB President Mario Draghi said any government bond buying would not come before Sept and only if governments activated the euro zone's bailout funds to join the ECB in buying bonds. Bullion fell in tandem with losses on Wall Street, as markets across the board looking for monetary stimulus were less than impressed. Just last week, Draghi said the ECB would do whatever it takes to preserve the euro. The bullion market was already under pressure a day after the Fed issued a policy statement that dashed investor hopes for new monetary stimulus, even though it acknowledged that the US economy has lost momentum. Central bank activity is in part filling in for the tame retail physical buying from top bullion consumer India by inserting a price floor to gold's downside. Physical buying from India remains weak, and farmers there are likely to have less discretionary income to buy gold after weather forecast predicted the country's monsoon rains will be deficient in 2012. Now technically market is getting support at 52642 and below could see a test of 52380 level, And resistance is now likely to be seen at 53343, a move above could see prices testing 53782.
Silver trading range for the day is 52380-53782.
Silver ended lower tracking weakness in base metals and crude prices after ECB Draghi's comments
Investors are waiting for the key U.S. non-farm payrolls data, due later in the day.
Holdings at ishares silver trust gained by 50.24 tonnes to 9759.01 tonnes