Silver prices fell by Rs 261 to Rs 55165 per kg in futures trading on sustained selling by speculators in line with a weakening global trend. Silver futures erased the early losses, retreating from the lowest level in almost seven days after disappointing U.S. economic data and amid lingering fears over the euro zone’s sovereign debt crisis. The prospect of tightening monetary policy is casting a shadow over the bullion outlook. Bullion tends to benefit from low real interest rates, as they reduce the opportunity cost of holding non-interest bearing bullion. Now technically market is trading in the range as RSI for 18days is currently indicating 68.56, where as 50DMA is at 50491.84 and silver is trading above the same and getting support at 54797 and below could see a test of 54429 level, And resistance is now likely to be seen at 55476, a move above could see prices testing 55787.

Trading Ideas:

Silver trading range is 54429-55787.

Silver slipped 0.47 percent underperforming gold in its second straight session of losses.

Silver is having resistance at 55476 and support at 54797 level.

In spot silver looks to get resistance at 37.28$ and support at 36.78$ level.