Silver prices rose to Rs 68,450 per kg on September 18 as participants increased their long positions. The precious metal settled with a loss of 1.4 percent on the COMEX on September 17.
Prices rose tracking strength in gold, amid a modest decline in the dollar, improving outlook for industrial demand and recovery in the Chinese economy. The US Dollar Index, measured against a basket of six currencies, slipped 0.1 percent to trade at 92.87.
Silver holdings in iShares ETF decreased by 55 tonne to 17,269.03 tonne.
MCX iCOMDEX Bullion Index gained 60.34 points, or 0.37 percent, at 16,157.07 at 14:20. The index tracks the real-time performance of MCX Gold and Silver futures.
In the futures market, silver for December delivery touched an intraday high of Rs 68,500 and a low of Rs 68,220 per kg on the Multi-Commodity Exchange (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 gained Rs 308, or 0.45 percent, to Rs 68,450 per kg at 14:21 hours on a business turnover of 17,224 lots. The same for March delivery edged higher Rs 303, or 0.43 percent, to Rs 70,842 per kg on a turnover of 362 lots.
The value of December and March’s contracts traded so far is Rs 733.25 crore and Rs 6.36 crore, respectively.
The spot gold-to-silver ratio currently stands at 71.99 to 1, which means the amount of silver required to buy one ounce of gold.
"Silver may witness choppy trade as gold and industrial metals struggle for direction. However, we expect safe haven buying to support gold price and this may keep silver prices supported as well," said Kotak Securities.
At 08:55 (GMT), the precious metal gained 1.09 percent at $27.39 an ounce in New York.For all commodities related news, click here