Silver settled down -0.62% at 44577 on some mild short covering from the shorter-term traders, though gains were cautious as markets still weighed Federal Reserve Chair Janet Yellen upbeat take on the U.S. economy. The economic highlight of the trading week was testimony on U.S. monetary policy from Federal Reserve Chair Janet Yellen before the U.S. Congress on Tuesday and Wednesday. Yellen’s remarks to the U.S. House on Wednesday elicited little market reaction. Some market watchers took Yellen’s comments to the Senate Tuesday as being a bit hawkish, but that’s a stretch. The buzz after her remarks Tuesday was that she commented on what she perceived to be over-priced stock market sectors. The somewhat surprising lack of concern in the market place regarding geopolitics has prompted better risk appetite in the market place this week. Tensions are rising on the Gaza strip as Israel prepares to bomb Hamas targets in that region and possibly send in ground troops. EU sovereign debt concerns, which last week resurfaced after a bank in Portugal was reported in serious trouble, are this week being ignored by traders and investors. The Iraqi civil war and the Russia-Ukraine conflict have faded well to the background of the market place. Also there was upbeat economic news coming from China Wednesday. The world’s second-largest economy had a slightly better-than-expected second-quarter GDP growth rate of 7.5%, year-on-year. A 7.4% growth reading was expected. Asian stock markets were supported on the China GDP data Wednesday. This news is a bullish underlying development for the raw commodity markets, including the precious metals. Technically market is getting support at 44369 and below same could see a test of 44162 level, And resistance is now likely to be seen at 44785, a move above could see prices testing 44994.

Trading Ideas:

Silver trading range for the day is 44162-44994.

Silver dropped after Fed said U.S. central bank could raise rates earlier or faster if hiring and wages take off in an unexpected way.

Strong U.S. manufacturing and housing data also stoked fears that a strong economic recovery could prompt the Fed to act soon.

The dollar also firmed on the news that U.S. wholesale prices rose more than expected in June, which capped silver’s gains