Silver prices were supported by improved demand outlook for industrial metal and weakness in the US dollar index
Silver prices declined to Rs 67,092 per kg on August 27 as participants increased their short positions. The precious metal has gained 4.5 percent last week on the COMEX.
The firmness in the rupee and weaker consumer demand in India is weighing on the price of the white metal, but improvement in industrial demand outlook capped the downside limited.
Silver holdings in iShares ETF decreased by 144.78 tonne to 17,617.63 tonne as investors booked profit.
In the futures market, silver for September delivery touched an intraday high of Rs 67,794 and a low of Rs 66,600 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 77,949.
Silver delivery for September contract slipped Rs 437, or 0.65 percent, to Rs 67,092 per kg at 14:20 hours on a business turnover of 7,348 lots. The same for the December contract fell Rs 413, or 0.59 percent, to Rs 69,650 per kg on a turnover of 11,077 lots.
The value of September and December’s contracts traded so far is Rs 1,306.87 crore and Rs 506.14 crore, respectively.
The spot gold-to-silver ratio currently stands at 71.10 to 1, which means the amount of silver required to buy one ounce of gold.
"Silver may witness choppy trade along with gold as market players await more clarity on the Federal Reserve’s monetary policy stance. However, there is a possibility of correction due to weaker consumer interest," said Kotak Securities.
At 08:56 (GMT), the precious metal was down 0.11 percent at $27.41 an ounce in New York.For all commodities related news, click here