Silver settled down by -1.38% at 42667 fell on Monday as the threat of an escalation of tensions in Ukraine appeared to wane for now, and a rally in global equity markets and strength in the dollar sent bullion prices below $1,300 an ounce. Russia said all issues related to its humanitarian convoy to Ukraine had been resolved but said no progress has been made toward a ceasefire or political solution to the fighting in the east of the country after talks between Russia, Germany, France and Ukraine on Sunday. Tensions, however, remained high after Ukraine accused pro-Russian rebels on Monday of hitting a refugee convoy of buses with rocket fire near the eastern city of Luhansk, but the separatists denied responsibility. The market was awaiting the annual meeting of central bankers in Jackson Hole, Wyoming, on Thursday, including Fed chief Janet Yellen's speech on Friday, which could give clues about the timing of any interest rate increases. Tensions in Ukraine and the Middle East have largely contributed to gold's near 8 percent gain this year, igniting bouts of demand when investors turned to assets perceived as an insurance against risk. However, any impetus these events provided has not lasted long. Meanwhile Upbeat U.S. data also weakened the commodity by keeping expectations firm that the Federal Reserve remains on track to end its stimulus bond-buying program around October and raise interest rates some time in 2015. Also the NAHB Housing Market Index increased to 55.0 in August, a seven-month high, from 53.0 in July, beating estimates for a reading of 53.0. Technically market is under fresh selling and getting support at 42432 and below same could see a test of 42198 level, And resistance is now likely to be seen at 42975, a move above could see prices testing 43284.

Trading Ideas:

Silver trading range for the day is 42198-43284.

Silver dropped as the threat of an escalation of tensions in Ukraine appeared to wane for now, and a rally in global equity markets weighed prices. 

The minutes of Fed’s July policy meeting due to be published on Wednesday for further clues about the timing of future interest rate hikes.

Apart from geopolitics, investors will be focused an annual meeting of top central bank officials in Jackson Hole from August 21 to 23.