Silver prices shot up taking firm cues from overseas markets. A firm trend in the domestic spot markets on the back of rising demand for the marriage season also influenced silver prices. Silver is closing the week at 41470. In the past two weeks the unit traded up to 43174, down to 38300 and back to current. The 39800 is an important support as it represents the base of our 3 month bullish trend line. The Gold Silver ratio bear trend returned with the ratio dropping from 53.50 to current 49.70. The risk remains lower with support seen at the 2008 low of 47.52. Now support for the silver is seen at 41320 and below could see a test of 41170. Resistance is now likely to be seen at 41660, a move above could see prices testing 41850.

Trading Ideas:

Silver trading range is 41170-41850.

Silver prices shot up taking firm cues from overseas markets

Silver is having resistance at 41660 and support at 41320 level.

Holdings at ishares silver trust rose by 41.06 tonnes to 10814.62 tonnes.