Silver settled up by 0.59% at 53787 following disappointing US home sales report, which provided sins that US economy may not have grew enough for the Fed to star tapering next month. Also an on-going increase in silver ETF holdings added to signs that investment demand for the grey metal is improving. Assets of the total-known ETFs backed by silver rose 10.59% year-to-date last week. Prices fell on Monday after investors concluded that even though monetary stimulus programs that have supported the precious metal in the past will stick around possibly for longer than anticipated, eventually, the Federal Reserve will begin winding down such policies likely this year. Stimulus tools such as the Fed's USD85 billion in monthly bond purchases tend to weaken the dollar by driving down interest rates, making gold an attractive hedge. Bullion and the dollar tend to trade inversely from one another, and talk of the end of Fed stimulus measures softens the former while bolstering the latter. Weak US economic reports sent gold prices spiking Friday and earlier on Monday until profit taking ended the rally. The Commerce Department reported earlier Monday that US durable goods orders dropped 7.3% in July, outpacing expectations for a 4.0% decline. Core durable goods orders, which are stripped of volatile transportation items, fell 0.6% last month, defying expectations for a 0.5% increase. The numbers weakened the greenback earlier by keeping sentiments alive that the Federal Reserve won't rush to taper its USD85 billion in monthly bond purchases. Technically market is getting support at 53289 and below same could see a test of 52791 level, And resistance is now likely to be seen at 54511, a move above could see prices testing 55235.

Trading Ideas:

Silver trading range for the day is 52791-55235.

Silver rallied after a slump in U. S. home sales dampened speculation the Federal Reserve will begin to taper its bond-buying program next month.

The minutes described recent U. S. economic data as "mixed", indicating that plans to taper could be pushed back if the economy was to weaken.

Core durable goods orders, excluding volatile transportation items, fell 0.6% last month, defying expectations for a 0.5% increase.