Silver's drop and settled at 52725 down by -0.65% sends market to bear territory which surged to a record high near $50 in April 2011 and had only plummeted two weeks later, sometimes moves with base metals due to its heavy uses by industries and settled at to $28.06 an ounce. Silver recovered in the late session as support seen from gold's gain as signs that China's economic recovery was gaining traction could boost demand for commodities, but prices could be capped by worries about the debt crisis in Cyprus and the weakness of the euro versus the US dollar. Also tension in the Korean peninsula has yet to trigger a rush in purchases from investors in Asia, but a full-scale conflict between the two Koreas could potentially boost gold's safe-haven appeal in times of uncertainty. Gold rallied to a 1-month high in March on concerns about fiscal stability in Europe after the European Union gave Cyprus an ultimatum to raise billions of euros it needs to clinch a bailout deal or face a likely exit from the currency zone. Stronger domestic demand helped China's factory activity to rebound in March, with new orders up sharply in a sign the underlying economic recovery is strong enough to weather any risks from patchy export performance. Also Hedge funds and other large speculators reduced their bets on a silver rally by 77 percent in the week ended March 26 to 632 futures and options, the lowest since September 2007, government data show. Inventories monitored by the Comex on March 26 reached the highest since August 1997. Now technically market is getting support at 52436 and below could see a test of 52146 level, And resistance is now likely to be seen at 53133, a move above could see prices testing 53540.

Trading Ideas:

Silver trading range for the day is 52146-53540.

Silver prices dropped after Chinese and U.S. economic data underlined worries about demand.

A rebound in construction spending in February, however, offered another sign of faster growth in the first quarter.

Official data released Monday revealed that U.S. construction spending rose more than expected in March.