Silver gained more than 1 percent, having earlier touching a 31-year high on strong physical demand and short-term supply tightness. Silver's outperforming over bullion sent the gold-silver ratio to a 13-year low under 40. Silver gained 1.3 percent to $36.08 an ounce and on MCX 0.86% to 53878. The metal rose to its highest since early 1980 in earlier trade at $36.70. The gold/silver ratio fell below 40:1 for the first time since February 1998, the weakest since billionaire Warren Buffett bought 130mln ounces of silver between 1997 and 1998. Bullion is building on a 5th weekly gain last week, triggered by unrest across the Arab world, which unseated leaders in Tunisia and Egypt before spreading to Libya, Bahrain, Yemen, Oman, and most recently the world's largest oil producer Saudi Arabia. Now technically market is in overbot as RSI for 18days is currently indicating 75.86, where as 50DMA is at 46598 and silver is trading above the same and getting support at 53330 and below could see a test of 52781 level, And resistance is now likely to be seen at 54597, a move above could see prices testing 55315.

Trading Ideas:

Silver trading range is 52781-55315.

Silver gained on strong physical demand and short-term supply tightness

Silver's outperforming over bullion sent the gold-silver ratio to a 13-year low under 40.

Holdings at ishares silver trust rose by 103.25 tonnes to 10898.14 tonnes.