Silver prices climbed to Rs 64,951 per kg on July 31 as participants increased their long positions tracking weakness in the dollar. The Dollar Index dropped to a two year low of 92.51 earlier in the session.
The white metal has gained a whopping Rs 14,533, or 28.56 percent, in July.
Silver holdings in iShares ETF declined by 28.97 tonne to 17,771.40 tonne as investors booked some profit.
In the futures market, silver for September delivery touched an intraday high of Rs 65,390 and a low of Rs 63,344 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 41,558 and a high of Rs 67,560.
Silver futures for September delivery jumped Rs 2,281, or 3.64 percent, to Rs 64,951 per kg at 14:20 hours on a business turnover of 13,951 lots. The same for the December delivery edged higher by Rs 2,261, or 3.52 percent, to Rs 66,568 per kg on a turnover of 895 lots.
The value of September and December contracts traded so far is Rs 3,820.36 crore and Rs 44.64 crore, respectively.
The spot gold-to-silver ratio currently stands at 81.98 to 1, which means the amount of silver required to buy one ounce of gold.
Silver is likely to trade in a broad range for the session with resistance at Rs 64,250-64,600 and support placed at Rs 63,250-62,800, Motilal Oswal said.
At 08:56 (GMT), the precious metal was down 3.69 percent at $24.22 an ounce in New York.For all commodities related news, click here