Silver settled up 3.25% at 46242 on demand from investors seeking safe-harbor from fears southern Europe's banking sector may be in trouble, while sentiments that the Federal Reserve will keep rates unchanged long after it concludes stimulus programs also supported the prices. Prices rose on safe-haven demand while, weak euro zone factory data further bolstered the precious metal's appeal. Meanwhile in the U. S., solid jobless claims numbers supported the greenback, which tends to trade inversely with the yellow metal, the European concerns offset the data due to Fed expectations.

The U. S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending July 5 declined by 11,000 to 304,000. The Federal Reserve released the minutes of its June policy meeting in which monetary authorities forecast bond purchases should conclude in October. Bond purchases tend to support gold by weakening the dollar, though gold rose anyway on sentiments that the Federal Reserve will likely keep interest rates low for some time after the bond-buying program closes.

The parent company of Portugal's largest bank, Banco Espírito Santo, said it missed payments on commercial paper to a few clients, which spooked markets by fueling concerns surrounding the soundness of the banking sectors in Portugal as well as in Spain and Italy. Some investors buy silver as a cheaper alternative to gold as both precious metals are considered currency alternatives and stores of value. Technically market is under fresh buying as market has witnessed gain in open interest by 4.49% to settled at 7824 while prices up 1455 rupee, now Silver is getting support at 45257 and below same could see a test of 44271 level, And resistance is now likely to be seen at 46812, a move above could see prices testing 47381.

Trading Ideas:

Silver trading range for the day is 44271-47381.

Silver rose on demand from investors seeking safe-harbor from fears southern Europe's banking sector may be in trouble.

Sentiments that the Federal Reserve will keep rates unchanged long after it concludes stimulus programs also supported the prices.

Prices rose on safe-haven demand while, weak euro zone factory data further bolstered the precious metal's appeal.