Silver settled up 0.25% at 40606 despite the fact that many investors remain on the sidelines of retail sales, silver futures slowly and steadily gaining momentum. Due to expectations of U.S economic recovery and the Federal Reserve raising interest rates sooner than expected markets in the recent past, bullion prices have dropped significantly. But on Wednesday the bargain hunters threw bullion prices climbing higher although gains were careful. But an optimistic report could throw bullion prices falling by reminding investors that ultra-loose financial policies that have supported the bullion since the 2008 financial crisis are on their way out. Bullion traders are looking ahead to Thursday’s U.S. retail sales report for further indications on the strength of the economic recovery. The precious metal has been under heavy selling pressure recently as investors bet on strong economic growth in the U.S. during the second quarter, as the economy shakes off the effects of a weather-related slowdown over the winter. Meanwhile the World Bank lowered its global growth forecast to 2.8% from an earlier estimate of 3.2%, citing weaker than expected growth in the U.S., Russia and China. Silver gain's can be capped as prices of the red metal have been under heavy selling pressure in recent sessions as traders worried about the outcome of a Chinese investigation into commodities-fueled financing deals that could hurt demand for the industrial metal. Concerns about fraud in commodities markets spread to a second Chinese port of Penglai earlier this week after authorities began conducting a probe into allegations of fraud in the port of Qingdao last week. Technically market is getting support at 40440 and below same could see a test of 40275 level, And resistance is now likely to be seen at 40805, a move above could see prices testing 41005.

Trading Ideas:

Silver trading range for the day is 40275-41005.

Silver gains on demand from bottom fishers, though many investors remained on the sidelines ahead of key retail sales report.

Due to expectations of U.S economic recovery and Fed raising interest rates sooner than expected, bullion prices have dropped significantly.

Holdings at ishares silver trust dropped by 0.32% i.e. 32.86 tonnes to 10321.75 tonnes from 10354.58 tonnes.