Silver rallied up 2.25% at 45579 as prices rose after a Malaysian Airlines plane crashed in Ukraine amid reports the aircraft was shot down. Investors sought safe harbor in the bullion as the dollar slumped on concerns the Russian-Ukraine crisis will heat up a new and dampen U. S. recovery. Investors were tracking news reports that a Malaysian Airlines plane crashed in Ukraine, with wire reports saying the aircraft had been shot down.

The dollar dropped as investors awaited confirmation of the plane crash and its cause, which gave bullion room to rise on safe. Malaysia Airlines confirmed it lost contact with the plane, while wire reports quoting Ukraine officials said the plane was shot down. Mixed data took a back seat to the geopolitical concerns in Ukraine, which have tended to weaken the dollar in the recent past by stoking fears the crisis could slow U. S. recovery by pushing up oil prices and dampening commerce between U. S. companies with Russia and Europe.

The data came after the U. S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 12 declined by 3,000 to 302,000 from the previous week’s total of 305,000. Separately, the U. S. Commerce Department said that the number of building permits issued last month fell by 4.2% to 963,000 units from May’s total of 991,000. The dollar had found support after Ms. Yellen said Tuesday that rates could rise sooner if the economic recovery continued to improve. However, the Fed chair also said that if the recovery was disappointing monetary policy would remain accommodative. Now Silver is getting support at 44868 and below same could see a test of 44157 level, And resistance is now likely to be seen at 46064, a move above could see prices testing 46549.

Trading Ideas:

Silver trading range for the day is 44157-46549.

Silver rose as investors sought shelter in the precious metal on fears of further turmoil after news that a Malaysian passenger jetliner had been downed in Ukraine.

Prices seen supported as investors took advantage of lower prices to buy and as a fresh round of U. S. sanctions on Russia weighed on stock markets.

Data showed that the number of building permits issues in the U. S. fell unexpectedly in June, while housing starts also missed forecasts.