Silver opened sharply higher and but given up its earlier gain and settled with a +0.27percent gain to settled at 56215 holding support above 56000 mark, having fallen to a six-week low of 55947 on Friday. Silver net long positions on Comex fell by 28.7 million ounces to 242.5 million ounces in the week to Feb. 12, according to the latest Commitment of Traders data. Bounce see in the early trades as bargain hunters resurfaced and buyers in China returned to the physical market after the Lunar New Year holiday, but a firm US dollar was likely to limit the upside. Meanwhile pressure seen as Hedge funds and some big speculators slashed their bullish bets on US commodities, taking aim particularly at gold which has lost some of its lustre this year, data released on Friday showed. Trading was quiet, as US markets were closed for the President's Day holiday. Fed Chairman Ben Bernanke told a G20 meeting of finance ministers and central bankers last week that while unemployment rates remain high in the US, the economy is improving and will help bring the global economy up with it. The news sent gold dropping to 6-month lows last week amid talk that the Fed may soon consider winding down its USD85 billion monthly bond-buying program, a monetary stimulus tool that weakens the dollar to spur recovery and job demand. Now technically market is getting support at 56086 and below could see a test of 55958 level, And resistance is now likely to be seen at 56379, a move above could see prices testing 56544.

Trading Ideas:

Silver trading range for the day is 55958-56544.

Silver opened higher and but given up its earlier gain and settled with 0.27% gain holding support above 56000 mark

Weak output data released last week continued to fuel dollar demand as well on Monday.

Talk that China will begin ramping up physical demand for precious metals now that the Lunar New Year holidays are over offset losses