Silver settled down -0.37% at 44928 fell for a second session as stronger stocks lured investors away but lingering geopolitical risks provided some support. Upbeat data released in the U.S. on Tuesday and a slew of better-than-expected earnings enticed investors out of bullion and into equities on Wednesday. The Labor Department reported Tuesday that the U.S. consumer price index rose 2.1% in June, unchanged from the previous month and in line with forecasts. On a month-over-month basis, U.S. consumer prices were up 0.3% after a 0.4% increase in May, also in line with expectations. Also pressure seen as Rupee strengthened to its strongest level in a week and half on Wednesday as continued foreign fund inflows into the domestic share and debt markets aided while gains in other Asian units also helped. While sentiments are mixed as investors opting for riskier assets tracking rising global equity markets. Nonetheless, the losses were limited due mainly to the escalating tensions in Gaza where fighting between Israel and Hamas rages on unabated. Meanwhile, ETF inventories showed that investors have become more bearishly biased towards silver. Holdings in total known ETFs backed by silver dropped almost 0.4% month-on-month, the only monthly dip among metals in the sector. Reports of waning physical demand pushed gold prices lower, though ongoing geopolitical concerns in Ukraine and Israel kept safe-harbor demand alive, which cushioned losses. Technically market is under fresh selling as market has witnessed gain in open interest by 1.59% to settled at 7625 while prices down -169 rupee, now Silver is getting support at 44816 and below same could see a test of 44703 level, And resistance is now likely to be seen at 45104, a move above could see prices testing 45279.

Trading Ideas:

Silver trading range for the day is 44703-45279.

Silver dropped as upbeat U.S. data and earnings sent investors flocking to stock markets and out of safe-haven positions in the bullion.

Upbeat data released in the U.S. and a slew of better-than-expected earnings enticed investors out of bullion and into equities on Wednesday.

ETF inventories showed that investors have become more bearishly biased towards silver.