Silver jumped +1.12% trading close to a 2-week high as markets interpreted a speech by Bernanke as an indication the central bank will maintain its ultra-loose monetary policy. Silver futures spiked higher after Bernanke said in a speech earlier that further monetary accommodation is needed to bring about big gains in the jobs market, which he described as “far from normal,” despite a recent improvement. The comments helped fuel speculation that further QE from the central bank may be coming, weakening the US dollar. QE by the Fed, keeps interest rates and borrowing costs low, which makes gold more attractive compared with yield such as bonds or stocks. Silver prices have been under pressure in recent weeks as hedge funds unwound long positions after the Fed gave an upbeat assessment of the US economy earlier in the month, which reduced expectations for a third round of US monetary easing by the central bank. Meanwhile, traders were also keeping an eye on developments in euro zone amid fears the region’s debt crisis could flare up again after Spain’s ruling People's Party did not secure an outright majority in an election win which could make it harder to push through harsh spending cuts. Now technically market is trading in the range as RSI for 18days is currently indicating 48.05, where as 50DMA is at 58368 and silver is trading below the same and getting support at 57204 and below could see a test of 56677 level, And resistance is now likely to be seen at 58094, a move above could see prices testing 58457.

Trading Ideas:

Silver trading range for the day is 56677-58457.

Silver jumped taking support from copper futures and interpreted by a speech by Bernanke.

Bernanke said in a speech earlier that further monetary accommodation is needed to bring about big gains.

Traders were also keeping an eye on developments in euro zone amid fears the region’s debt crisis could flare up again