Silver settled up nearly +0.93% at 58743 headed towards $32 as Federal Reserve Chairman Ben Bernanke was to make his first public appearance since the minutes of the Federal Open Market Committee meeting were released earlier this month. Investors were looking ahead to a speech by Bernanke on monetary policy later in the trading day, amid speculation that the Fed chief would quash speculation over an earlier than expected end to the central bank’s quantitative easing program. Pressure seen on domestic market as rupee also rose after India delayed the implementation of controversial rules on tax avoidance to 2016, a decision expected to support capital inflows from foreign investors. The potential for rate cuts is expected to support the rupee, although investors are worried about the impact of twin deficits, the current account and fiscal deficit, and are looking for signs that economic growth is bottoming out. Bullion tumbled to a four-month low last week after the minutes from the Fed’s December meeting indicated that the central bank could end its QE program earlier than expected. The Fed’s quantitative easing program is viewed by many investors as a major source of liquidity that weakens the US dollar and helps support prices of commodities and other hard assets, including gold. Now technically market is getting support at 58374 and below could see a test of 58005 level, And resistance is now likely to be seen at 59038, a move above could see prices testing 59333.

Trading Ideas:

Silver trading range for the day is 58005-59333.

Silver gained as appetite for growth-linked assets strengthened amid optimism over the improved global economic outlook

Prices found additional support amid optimism over the improved economic outlook for the euro zone.

2013, silver’s industrial demand may continue to be the wild card in price performance for the white metal.