Silver futures down on subdued demand, weak global cues

Amid fall in spot demand and a weak trend overseas, silver futures prices fell sharply by 1.45 per cent, to Rs 39,561 per kg today.

At the Multi Commodity Exchange, silver for the month of May contract traded at Rs 583, or 1.45 per cent lower at Rs 39,561 per kg in a turnover of just one lot, while March contract fell by Rs 434, or 1.09 per cent to Rs 39,435 per kg in a turnover of five lots.

Similarly, the metal for delivery in December-month declined by Rs 419, or 1.06 per cent to Rs 39,191 per kg with a business turnover of 9 lots.

Analysts attributed fall in silver futures prices to slackened demand at the domestic spot markets following end of festive season and a weak trend overseas after a stronger dollar reduced appeal for precious metals as an alternative investment.

Meanwhile, silver lost 1.96 per cent to $25.53 an ounce in New York last evening.