Silver settled up 0.25% at 35383 as investors monitored volatile movements in global equity markets. Bullion's gains came as U.S. stock futures turned lower amid worries over sluggish global growth. On the data front, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits fell by 6,000 last week to 275,000 from the previous week's total of 281,000. First-time jobless claims have held below the 300,000-level for 27 consecutive weeks, which is usually associated with a firming labor market. The report boosted optimism over the health of the labor market and supported the case for a rate hike when the Federal Reserve meets on September 16-17. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months. Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise. Government data showed that Chinese producer prices fell by a more-than-expected 5.9% in August, the 42nd straight monthly decline and the worst reading since October 2009. Consumer prices rose 2.0% last month, above expectations for 1.8% and up from 1.6% in July. Non-food inflation remained subdued at 1.1%, unchanged from a month earlier. The soft inflation data added to speculation policymakers in Beijing will have to introduce further stimulus measures to boost growth. Technically market is under short covering as market has witnessed drop in open interest by -7.11% to settled at 9439 while prices up 89 rupee, now Silver is getting support at 35189 and below same could see a test of 34995 level, And resistance is now likely to be seen at 35709, a move above could see prices testing 36035.

Trading Ideas:

Silver trading range for the day is 34995-36035.

Silver prices ended with gains as investors monitored volatile movements in global equity markets.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits fell by 6,000 last week to 275,000.

The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.