Silver futures on Friday dropped by Rs 346 to Rs 54,689 per kilogram as participants cut their bets.
On the Multi Commodity Exchange, silver contracts for September delivery declined by Rs 346 or 0.63 per cent to Rs 54,689 per kg in a business turnover of 24,509 lots.
Globally, silver was trading 0.49 per cent lower at USD 18.14 per ounce in New York.