Silver settled down -1.08% at 39586 despite less-than-stellar U. S. economic indicators, as markets bet the U. S. economy continues to recover and is in less need of monetary support from the Federal Reserve. Monetary stimulus tools such as Fed's monthly asset-purchasing program weaken the dollar by suppressing longer-term interest rates, making prices an attractive hedge as long as they remain in place. Prices have been under heavy selling pressure in recent weeks as upbeat U. S. economic data underlined the view that the U. S. economy is shaking off the effects of a weather-related slowdown over the winter, bolstering the outlook for the broader economic recovery. While data released Thursday showed that U. S. economy contracted at a seasonally adjusted annual rate of 1% in the first quarter, market expects second quarter growth to snap back with a 3.8% gain. While harsh winter weather dampened spirits, concerns wages will remain weak did more so. "The May decline in consumer confidence was not due to the dismal state of the economy during the 1st quarter, which had the weakest pace of GDP growth in three years. Consumers thought the harsh winter weather was mainly responsible," the indicator's statement read. Consumer sentiment would suffer more if the economy failed to rebound in the months ahead, though the survey revealed that consumers feel the economy will be strong enough to produce more jobs in the year ahead. In the week ahead, investors will be looking to Friday's U. S. nonfarm payrolls report for May for further indications on the strength of the labor market and the need for stimulus from the Federal Reserve. Now Silver is getting support at 39338 and below same could see a test of 39091 level, And resistance is now likely to be seen at 40011, a move above could see prices testing 40437.

Trading Ideas:

Silver trading range for the day is 39091-40437.

Silver prices dropped despite less-than-stellar U. S. economic indicators, as markets bet the U. S. economy continues to recover.

The May decline in consumer confidence was not due to the dismal state of the economy during the 1st quarter.

Still prices ignored the data, as the U. S. economy continues to recover, which will steer investors' attention to stocks and base metals.