Upside in bullion remained capped weighed down by a rallying dollar on the bet that the US Federal Reserve would not put off stimulus tapering, Sriram Iyer, Senior Research Analyst at Reliance Securities said.
However, worries about high inflation, combined with stalling economic growth, weighed on global shares amid rallying oil prices, limiting losses in inflation-hedge bullion, he said.
ETF outflow and a weakening outlook for industrial demand amid a slowdown in manufacturing activity globally also weighed on the prices.
Silver may remain choppy, as gold and industrial metals struggle for direction, said Kotak Securities. Gold, however, should benefit from risk aversion in the global market, which may benefit silver as well, it said.
Silver holdings in iShares ETF fell by 86.4 tonnes to 16,987.04 tonnes. The fund NAV is trading at a premium of 0.15 percent.
The US dollar index was up 0.01 percent at 94.32 against the major currencies in the evening session.
The spot gold-silver ratio was at 77.97 to 1, indicating that gold outperformed silver.
MCX Bulldex soared 53 points, or 0.38 percent, to 14,060 at 4.40 pm. The index tracks the real-time performance of MCX gold and silver futures.
On the MCX, the December silver delivery touched an intraday high of Rs 61,900 and a low of Rs 61,579 a kg. In the current series, the metal has touched a low of Rs 58,150 and a high of Rs 74,127.
Silver delivery for the December contract gained Rs 63, or 0.10 percent, to Rs 61,807 per kg at 4.42 pm with a business turnover of 10,847 lots. The same for March jumped Rs 5, or 0.01 percent, to Rs 62,237 with a turnover of 1,431 lots.
The value of December and March contracts traded, so far, is Rs 633.38 crore and Rs 21.47 crore, respectively.
The Silver Mini contract for November increased by Rs 92, or 0.15 percent, to Rs 62,048 on a business turnover of 27,241 lots.
"Technically, LBMA silver above the $22.50 level could see sideways to marginal upside momentum up to $23.30-$24.20 levels. Support is at $22.00-$21.77 levels. On the MCX Silver December above Rs 61,500 level could see Rs 62,000-63,300 levels. Support is at Rs 60,900-60,200 levels", Iyer stated.
At 1114 GMT, silver declined 0.23 percent and was quoting at $22.61 an ounce in New York.
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