Silver gained by +0.83% to settled at 58470 against the gain by +1.21% in international at $30.445 a troy ounce as the euro held on to gains on expectations the European Central Bank will refrain from a rate cut this week, and as robust physical demand in Asia underpinned prices.

Pressure seen as rupee rose helped by continued inflows into local equities, but a warning from Fitch on the country's ratings again highlighted the headwinds facing the domestic currency. Last week bullion dropped on signals from the Federal Reserve that its latest stimulus program may end this year.

Also support seen after the Holdings of iShares Silver Trust, the world's biggest silver-backed exchange-traded fund, rose to 10,112.22 tonnes on Jan 7, its highest since May 2011. Overall market sentiment remained cautious amid uncertainty about continuing political wrangling in Washington over further US budget cuts and raising the US debt ceiling.

Bullion tumbled last week after the minutes from the Federal Reserve’s December meeting indicated that the central bank could end its quantitative easing program earlier-than-expected. According to the minutes, several Fed officials thought the central bank would be able to slow or stop its bond-buying program well before December 2013.

The Fed’s quantitative easing program is viewed by many investors as a major source of liquidity that weakens the US dollar and helps support prices of commodities. Now technically market is getting support at 58130 and below could see a test of 57790 level, And resistance is now likely to be seen at 58730, a move above could see prices testing 58990.

Trading Ideas: Silver trading range for the day is 57790-58990.

Silver gained after stocks posted modest gains enticing investors to take up nicely priced positions in the precious metal.

Overall market sentiment remained cautious amid uncertainty about continuing political wrangling over further U. S. budget cuts Holdings of iShares Silver Trust, the rose to 10,112.22 tonnes on Jan 7, its highest since May 2011.