Silver prices edged lower to Rs 59,415 per kg on September 25 as participants increased their short positions. The precious had gained 0.4 percent on the COMEX on September 24.
The precious metal along with other commodities recovered from the recent lows as the Dollar Index shed some of its recent gains. The index, measured against a basket of six currencies was marginally up 0.03 percent to 94.42.
In economic news, US jobless claims increased slightly to 870,000 last week from 866,000 a week earlier, according to the US Labour Department.
The white metal has fallen 12.46 percent this week on the Multi-Commodity Exchange (MCX).
The spread between the domestic and international price has narrowed in the last few days, showing some signs of improvement in physical market activity.
Silver holdings in iShares ETF dwindled by 257.6 tonne to 16,956.42 tonne.
MCX iCOMDEX Bullion Index slipped 44.95 points, or 0.29 percent, to 15,195.16 at 14:28 hours. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, silver for December delivery touched an intraday high of Rs 59,720 and a low of Rs 58,940 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 49,415 and a high of Rs 79,723.
Silver futures for December delivery dropped Rs 214, or 0.36 percent, to Rs 59,415 per kg at 14:30 hours on a business turnover of 15,786 lots. The same for March delivery slid Rs 224, or 0.37 percent, to Rs 61,036 per kg on a turnover of 624 lots.
The value of December and March’s contracts traded so far is Rs 1,206.84 crore and Rs 8.40 crore, respectively.
The spot gold-to-silver ratio currently stands at 80.64 to 1, which means the amount of silver required to buy one ounce of gold.
Anuj Gupta, DVP - Commodities and Currencies Research, Angel Broking, said, “Traders can go buy silver at Rs 58,500 with a stop loss at Rs 57,500 and a target of Rs 60,500 levels."
At 09:03 (GMT), the precious metal was down 0.45 percent at $23.30 an ounce in New York.For all commodities related news, click here