Silver settled down -0.27% at 42827 prices held flat with Russia in focus, but overall thin tade with U.S. markets shut for a holiday overnight. U.S. officials are working closely with the European Union to keep their Russia sanctions programs aligned in timing and severity. Bullion markets were now awaiting U.S. manufacturing PMI and construction spending data to gauge the strength of the world's biggest economy. Overnight, the Russian ruble hit a fresh record low against the dollar as U.S. officials are working closely with the European Union to keep their Russia sanctions programs aligned in timing and severity. On Saturday, European Union leaders agreed to draw up options within a week for possible new sanctions against Russia, with action to follow quickly unless Moscow takes clear steps to scale back its intervention in Ukraine. Reports have emerged that hundreds of Russian soldiers have entered Ukraine. European Council President Herman Van Rompuy said the bloc wouldn't set out specific criteria for triggering fresh sanctions but said there was "determination" to ensure Russia paid an appropriate price for heightening tensions. Last week, silver prices hit $19.90 an ounce, their highest level since Aug. 20 on Thursday after Ukraine’s president said Russian troops had entered the conflict in eastern Ukraine to support pro-Russian separatists there. Investors will be looking ahead to Tuesday’s ISM report on U.S. manufacturing activity and to Friday’s August nonfarm payrolls report for further indications on the strength of the U.S. economic recovery. Technically market is under fresh selling and getting support at 42766 and below same could see a test of 42705 level, And resistance is now likely to be seen at 42916, a move above could see prices testing 43005.

Trading Ideas:

Silver trading range for the day is 42705-43005.

Silver prices held flat with Russia in focus, but overall thin trade with U.S. markets shut for a holiday overnight.

Bullion prices failed to benefit strongly from warnings that Russia's conflict with Ukraine was sliding out of control

Traders are now focusing on whether the European Central Bank will announce plans for economic stimulus when it meets this week.