Silver on Monday traded in the wide range and settled with a marginal gain of +0.24% at 62934, but before this we have seen silver on mcx shoot up sharply to test 64999 level and Spot silver rose to a seven-month high of $35.36 struck in the previous session as an unexpected expansion in US factory activity and more clarity on Spain's bailout plan sent some relief through the market, knocking the dollar index from a three-week high. A weaker dollar makes dollar-priced gold more attractive to buyers holding other currencies. More central banks may follow the lead of the ECB, the US Fed and the BoJ in adopting further stimulus measures to spur economic growth, benefiting gold which is a good hedge against rampant cash printing. Holdings in silver-backed ETF slid 122.8mts yesterday to 18,503.6 tons. Bullion tended to edge higher as the Fed is currently running a QE3, a monetary stimulus tool that sees the US central bank buy $40 billion in mortgage-backed securities a month to spur recovery. Such policy tools weaken the greenback and make gold an attractive hedge. Surprisingly weak jobs numbers could dampen talk of further Fed intervention since the current policy calls for open-ended bond buying, though investors held tight ahead of the data. Now technically market is getting support at 61758 and below could see a test of 60583 level, And resistance is now likely to be seen at 64554, a move above could see prices testing 66175.

Trading Ideas:

Silver trading range for the day is 60583-66175.

Silver gains as an unexpected expansion in US factory activity and more clarity on Spain's bailout plan sent some relief through market

Investors were also expecting ratings agency Moody’s to announce the results of a ratings review on Spain.

Holdings at ishares silver trust dropped by 5.42 tonnes to 9920.18 tonnes.