Silver settled up 0.16% at 42609 tracking gains from Comex Silver which advanced as escalating tensions over the crisis in Ukraine underpinned demand for traditional safe-haven assets. Demand for safe haven assets strengthened amid reports of heavy fighting between government forces and pro-Russian rebels in Slovyansk, Eastern Ukraine. Market players are concerned that hostilities between Kiev and Russia will escalate further and drag the U.S. deeper into the standoff. U.S. Secretary of State John Kerry threatened Russia with additional sanctions on Sunday, unless the country stopped backing separatists in eastern Ukraine. Meanwhile, market players continued to assess a report showing that the U.S. economy added jobs at the fastest pace in more than two years in April, but also showed weaker earnings growth and a drop in labor force participation. The Labor Department reported Friday that the U.S. economy added 288k jobs in April, well above expectations for jobs growth of 210k. The U.S. unemployment rate dropped to a five-and-a-half year low of 6.3%, compared to expectations for 6.6%. But optimism was tempered after the report also showed that the labor force participation rate, which measures the proportion of people either working or looking for work, fell to 62.8% from 63.2% in March. Meanwhile, average wage growth edged lower in April from the same month a year earlier, dampening the medium term inflation outlook. Technically market is under short covering as market has witnessed drop in open interest by -1.8% to settled at 13568 while prices up 69 rupee, now Silver is getting support at 42367 and below same could see a test of 42126 level, And resistance is now likely to be seen at 42897, a move above could see prices testing 43186.

Trading Ideas:

Silver trading range for the day is 42126-43186.

Silver gained as escalating tensions over the crisis in Ukraine underpinned demand for traditional safe-haven assets.

Silver jewellery exports from India recorded significant decline of 41.89% year-on-year to $106.77 million in March 2014.

Capping bullion's gains, however, was an upbeat report on the U.S. service sector