Silver yesterday settled down -0.71% at 43235 as pressure seen after rupee recovered a large part of its losses helped by dollar sales from a corporate and exporters, but disappointment over lack of any specific measures from the government prevented a further rise. Also pressure added after stronger-than-expected US economic data helped ease concerns about the impending start of the winding down of stimulus from the Fed. Bullion remained lower after US government said retail sales rose more than expected in May and first-time applications for jobless benefits fell last week, showing signs of resilience in the economy despite belt-tightening in Washington. Data was seen as adding to arguments for the Fed to end its $85-billion monthly bond purchases. Market said that a gradual end of Fed stimulus has already driven up US short-term interest rates, reflected in the Treasury bond yields, and that keeps bullion from rising further. Investors remained cautious amid ongoing speculation over whether the Federal Reserve will begin to unwind its easing program in the coming months. Moves in the silver price this year have largely tracked shifting expectations as to whether the US central bank would end its bond-buying program sooner-than-expected. But prices remained supported due to a broadly weaker US dollar, as dollar-priced commodities become cheaper to investors holding other currencies when the greenback weakens. Technically market is now getting support at 42931 and below same could see a test of 42626 level, And resistance is now likely to be seen at 43790, a move above could see prices testing 44344.

Trading Ideas:

Silver trading range for the day is 42877-44123.

Silver edged lower amid speculation central banks around the world will refrain from adding more economic stimulus.

The upbeat data added to ongoing speculation over whether the Fed will begin to unwind its easing program in the coming months.

Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.