Silver was flat as support seen after lingering worries over the euro zone supported sentiment despite an initial decline in safe-haven demand when Cyprus clinched a rescue deal. Cyprus's rescue plan, which forces depositors and bank bondholders to bear losses, represents a new template for resolving euro zone banking problems and other countries may have to restructure their banking sectors, the head of the region's finance ministers said. Meanwhile The U. S. Federal Reserve must remain very accommodative because the labour market remains far from healthy despite some recent improvement in the broader economy, said New York Fed President William Dudley, a close ally of Fed Chairman Ben Bernanke. The European Central Bank said last week that it will cut off liquidity to Cypriot banks on Monday if an agreement with the European Union and the International Monetary Fund on a bailout solution is not in place. Under the bailout deal, the island's second largest bank, Laiki Bank, will be restructured and holders of bank deposits of more than EUR100,000 will be subject to a 30% haircut. Depositors holding less than EUR100,000 in their bank accounts will be protected from any deposit taxes. But the subsequent risk rally faded quickly as worries remained that the euro zone faces more challenges. Ratings agency Moody's warned earlier that Cyprus remains at risk of default despite the bailout deal and that the dire financial situation in the Mediterranean island was credit negative for all sovereign ratings in the euro area. Now technically market is getting support at 53771 and below could see a test of 53329 level, And resistance is now likely to be seen at 54497, a move above could see prices testing 54781.

Trading Ideas:

Silver trading range for the day is 53329-54781.

Silver was flat as support seen after lingering worries over the euro zone supported sentiment

Eurozone finance ministers and the International Monetary Fund approved a EUR10 billion rescue package for Cyprus.

The bailout deal guaranteed that accounts holding EUR100,000 or less will continue to be insured and likely shifted to another financial institution.