Silver futures eased down by -0.88% to settled at 54970 as investors remained cautious ahead of a meeting of EU finance ministers scheduled for later in the day. FM from the 17 EU member states were to meet in Brussels later in the day to discuss the region's financial crisis and ways to boost the firepower of the EFSF, the region's bailout fund. In late October, euro zone leaders agreed to leverage the EUR440bn EFSF to EUR1 trillion as part of a comprehensive agreement to resolve the debt crisis. Also Italy was scheduled to auction up to EUR8bn in 10year bonds, in what was being seen as a key test of investor confidence in Italian debt. Meanwhile, French newspaper La Tribune reported earlier that ratings agency S&P's could downgrade the outlook on France's AAA credit rating to negative. Citing several unnamed sources, the newspaper said that the move by S&P could come "shortly". Elsewhere, ratings agency Fitch downgraded its credit outlook for the US to negative, following a congressional committee's failure to agree on deficit cuts. For much of the last year, investors' typical reaction to bad news from Europe was to buy gold, as it boosts the safe haven appeal of the precious metal, but that relationship has unraveled recently. Now technically market is trading in the range as RSI for 18days is currently indicating 48.81, where as
50DMA is at 54900 and silver is trading above the same and getting support at 54559 and below could see a test of 54148 level, And resistance is now likely to be seen at 55373, a move above could see prices testing 55776.

Trading Ideas:

Silver trading range is 54148-55776.

Silver dipped as traders unwilling to go long until there is an official announcement in regards to euro debt.

The net speculative length for Comex silver fell 529.5tn as a drop in long positions according to the CFTC.

French newspaper La Tribune reported that ratings agency S&P's could downgrade outlook on France's AAA.