Silver futures rise 1.24% to Rs 75,083/kg

Silver prices were supported by improved demand outlook for industrial metal and weakness in the US dollar index

Silver prices climbed to Rs 75,083 per kg on August 10 as participants increased their long positions. After a sharp decline of 3 percent on August 7 on a dollar rebound, the white metal jumped on August 10 tracking gains in gold prices on increasing US-China tensions.

The improvement in manufacturing activity globally is lending support to silver prices on hopes of a revival in industrial demand for the metal.

Silver holdings in iShares ETF fell by 43.45 tonne to 17,823.22 tonne as investors booked profit.

In the futures market, silver for September delivery touched an intraday high of Rs 76,219 and a low of Rs 74,302 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 futures for September delivery gained Rs 923, or 1.24 percent, to Rs 75,083 per kg at 14:28 hours on a business turnover of 14,755 lots. The same for December delivery edged Rs 841, or 1.10 percent, higher to Rs 77,096 per kg on a turnover of 1,832 lots.

The value of September and December contracts traded so far is Rs 4,060.88 crore and Rs 165.07 crore, respectively.

The spot gold-to-silver ratio currently stands at 71.77 to 1, the lowest since January 2017.

"While overall momentum still looks positive, we expect choppy trade in the near term unless there are fresh positive triggers. Hence, one needs to wait for corrective dips to create fresh long positions," said Kotak Securities.

At 09:02 (GMT), the precious metal was up 3.2 percent at $28.42 an ounce in New York.

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