Silver settled up 1.59% at 41251 advanced tracking gain's from Comex Silver which settled well above $19.50 as US equity markets declined, boosting the appeal of the precious metal as an alternative investment and on stronger safe-haven demand as tensions escalated in Iraq. Investors monitored developments in Iraq, where insurgents linked to al-Qaeda reportedly took full control of the northern oil city of Kirkuk on Thursday and moved closer to the capital, Baghdad. On Wednesday, militants from the Islamic State in Iraq and Syria, or ISIS, seized the northern cities of Mosul and Tikrit, renewing concerns over a disruption to supplies from the region. The U.S. said that it is working with Iraq's leaders on a coordinated response to regain lost territory and would provide additional assistance to Baghdad. While the U.S. Commerce Department said that retail sales inched up by a seasonally adjusted 0.3% last month, missing expectations for a 0.6% increase. Retail sales for April were revised up to a 0.5% gain from a previously reported increase of 0.1%. Core retail sales, which exclude automobile sales, eased up by a seasonally adjusted 0.1% in May, disappointing forecasts for a 0.2% increase. A separate report from the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 7 increased by 4,000 to a seasonally adjusted 317,000 from the previous week’s revised total of 313,000. Technically market is under short covering as market has witnessed drop in open interest by -1.31% to settled at 10282 while prices up 645 rupee, now Silver is getting support at 40726 and below same could see a test of 40200 level, And resistance is now likely to be seen at 41538, a move above could see prices testing 41824.

Trading Ideas:

Silver trading range for the day is 40200-41824.

Silver gains as weaker than expected U.S. data on retail sales and initial jobless claims underlined concerns over the health of the U.S. economy.

More short covering and bargain hunting were featured, as has been the case the past few sessions.

Now, some safe-haven demand is also surfacing due to unrest in Iraq.