Silver settled down -0.31% at 43712 traded in the choppy trading on Tuesday after data out of Germany suggested the Russia-Ukraine conflict may be watering down global recovery, which bolstered the precious metal's safe- haven appeal. The ZEW Centre for Economic Research reported that its index of German economic sentiment dropped to 8.6 this month, down from 27.1 in July. It was the weakest reading in 20 months and came in well below economists' forecasts of 18.2, which sent investors snapping up safe-harbor gold positions. The current conditions index deteriorated to a seven-month low of 44.3 from 61.8 in July, worse than expectations for a decline to 55.5. Geopolitical tensions in Eastern Europe are apparently taking their toll on the German economy. Recent economic reports have indicated that sanctions slapped on Russia due to its alleged meddling in the Ukraine conflict are dragging on the German economy, Europe's largest and Russia's largest trading partner in Europe. The ZEW report noted that industrial production and incoming orders suggest "markedly reduced investment activities by German firms against the backdrop of uncertain sales prospects." The report also indicated that economic growth in Germany will be weaker than expected in 2014. Russian has said it is wrapping up military exercises on its border with Ukraine and has added the country is working with the International Red Cross to send humanitarian aid to Ukraine. Still, uncertainty over whether the ceasefire can last took fueled demand for gold, as concerns have grown that Russian trucks shipping aid into Ukraine may be used as a cover to smuggle in troops for combat missions. Technically market is getting support at 43494 and below same could see a test of 43277 level, And resistance is now likely to be seen at 43989, a move above could see prices testing 44267.

Trading Ideas:

Silver trading range for the day is 43277-44267.

Silver edged higher as market players continued to monitor geopolitical developments in Ukraine, Iraq and Gaza.

Bullion traded in choppy range after data out of Germany suggested the Russia-Ukraine conflict may be watering down global recovery.

Global economic data has also been strong, fuelling expectations that Fed will raise interest rates sooner rather than later.