Silver settled up 0.6% at 48023 near the highest level in more than three months as lingering worries about global economic growth burnished its safe haven appeal. Economic data points to continued struggles around the globe, with German investor sentiment weaker and factory activity in New York state slowing in February. Recent soft U.S. economic data has prompted some investors to wonder whether the Federal Reserve will slow the pace of reductions to its asset-buying stimulus program. Silver has gained 13 percent this year as demand for coins and jewelry surged. Holdings in exchanged-traded products backed by the metal climbed last year as the spot price tumbled 36 percent, the most since 1981, amid a U.S. equity rally to a record. Gold and silver prices have been well-supported in recent weeks amid concerns that the U.S. economic recovery has lost momentum since the end of last year as inclement winter weather weighed on growth. Data on Friday showed that U.S. industrial production fell 0.3% from a month earlier in January, compared to expectations for a 0.3% gain. This disappointing data came one day after the Commerce Department said that retail sales fell 0.4% in January, confounding expectations for a 0.3% increase. Holdings at ishares silver trust gained by 1.19% i.e. 119.67 tonnes to 10150.51 tonnes from 10030.84 tonnes. Technically market is under short covering as market has witnessed drop in open interest by -1.65% to settled at 10360 while prices up 288 rupee, now Silver is getting support at 47274 and below same could see a test of 46524 level, And resistance is now likely to be seen at 48432, a move above could see prices testing 48840.

Trading Ideas:

Silver trading range for the day is 46524-48840.

Silver seen supported after weak U.S. manufacturing output last week cast doubts over the pace of Fed’s monetary tightening

Economic data points to continued struggles around the globe, with German investor sentiment weaker and factory activity in New York state slowing in February.

Holdings at ishares silver trust gained by 1.19% i.e. 119.67 tonnes to 10150.51 tonnes from 10030.84 tonnes.