Silver dropped -1.07% as sentiment and the euro remained fragile as European leaders met to discuss the deepening euro-zone debt crisis. Silver tested key support levels for a second time in a week as a wave of selling hit commodities, the euro and equities, before bouncing off those lows but slight support seen on rupee weakness which once again closed below 56.00 level. Concerns over the prospect that debt-laden Greece could exit the euro to avoid unpopular austerity measures have grown ahead of June 17 elections, which could hasten the country's departure from the currency bloc if voters back anti-bailout parties. While the ramifications of a Greek exit are unknown, it would at least be some decisive action towards resolving the crisis, which could give investors the direction they've been looking for. Later in the day, the market showed more resilience to a larger than expected rise in home sales in April that had knocked hopes of fresh economic stimulus from the US Federal Reserve. Bullion major headwind has come from its negative correlation to the dollar, a relationship that reached its most negative in a month, meaning a rise in the US currency proves even more damaging to gold than it would have just a week ago. Now technically market is trading in the range as RSI for 18days is currently indicating 39.17, where as 50DMA is at 56669 and silver is trading below the same and getting support at 53342 and below could see a test of 52866 level, And resistance is now likely to be seen at 54272, a move above could see prices testing 54726.

Trading Ideas:

Silver trading range for the day is 52866-54726.

Silver dropped -1.07% as sentiment and the euro remained fragile.

The ramifications of a Greek exit are unknown, it would at least be some decisive action towards resolving the crisis

The bulls were encouraged to see bullion hold, but bullion remains on weak ground while the market is in risk-off mode