Silver settled up 1.11% at 42348 as support from events in the Ukraine underpinning demand. Silver failed to move in opposite direction to gold even despite some positive numbers from the industrial demand side still Silver is trading below $20 mark. According to the latest data from the CPM, fabrication demand for the grey metal is likely to increase 2.9% in 2014 to 890.7 million ounces that is a nine-year high. Furthermore, silver inventories in the total known ETFs climbed 0.76% week-on-week and almost 2% year-on-year. However rising tensions between Russia and Ukraine with pro Russian separatists seeking to join Russia after referendums and the probability of further sanctions against Moscow boosted the safe haven appeal of bullion trimming losses in bullion futures. Yesterday bullion gained on safe-haven buying; continuing crisis in Ukraine , a high US inflation reading and short covering. Silver is holding in its recent trading band, traders are trying to capture gains from small moves in a range-bound market, buying on dips and selling into rallies. Higher inflation numbers, along with the underlying supportive tensions in the Ukraine and South African strike, has the precious-metals complex on the up swing.  The US PPI posted the largest increase in April since September 2012. The Labor Department reported that PPI rose 0.6%, above the consensus forecasts. The CPI (consumer price index) is scheduled for release Thursday. Technically market is under short covering as market has witnessed drop in open interest by -5.91% to settled at 13266 while prices up 464 rupee, now Silver is getting support at 42082 and below same could see a test of 41815 level, And resistance is now likely to be seen at 42683, a move above could see prices testing 43017.

Trading Ideas:

Silver trading range for the day is 41815-43017.

Silver gains as buying seen due to Ukraine worries and the potential for stimulus measures in Europe.

Silver prices seen supported buoyed by a report that said demand for the metal rose to a record last year

In US year-over-year, the producer price index rose at an annualized rate of 2.1% in April, above expectations for a 1.7% increase.