Silver settled down -2.51% at 44912 slid to its biggest one-day drop since early December, as fading fears over Portugal's banking sector and a gain in U. S. equities prompted investors to take profits after bullion's rally to 3-1/2 month highs last week. Bullion prices were hit by waves of heavy selling when prices fell below key support at 45,000, triggering massive stop-loss orders. Silver rallied above 46000 last Thursday after questions about the health of Portugal's top-listed bank sparked worry that a new euro zone banking crisis might be in the offing.

But the fears have now faded, with Asian shares gaining on Monday as investors put aside concerns about euro zone banks and looked forward to corporate earnings and a raft of global economic events. Troubles at the Portugal bank were unlikely to become a widespread European crisis. So Investors sold off bullion ahead of the start of the U. S. corporate-earnings season. Market participants were also awaiting congressional testimony by Federal Reserve Chair Janet Yellen later in the week.

Traders were awaiting fresh indications on the future direction of monetary policy after last week’s minutes of the Fed’s June meeting revealed little new information on when rates could start to increase. Last week Silver was moving in tandem with its more expensive peer, ending the week with a 1.53% gain. At the same time, the grey metal unlike gold does not face a headwind from falling ETF holdings. Holdings in total known ETFs backed by silver still remained up 3.6% year-to-date even despite a mild decline thought the last month. Technically market is under long liquidation and getting support at 44581 and below same could see a test of 44250 level, And resistance is now likely to be seen at 45547, a move above could see prices testing 46182.

Trading Ideas:

Silver trading range for the day is 44250-46182.

Silver tumbled as fears the euro zone's periphery is facing a banking crisis faded, which enticed investors out of safe-haven positions

Investors sold off bullion on Monday ahead of the start of the U. S. corporate-earnings season.

Market participants were also awaiting congressional testimony by Federal Reserve Chair Janet Yellen later in the week.