Silver futures down on reduced offtake, global cues

Eurozone debt crisis worries dampens investment sentiment, pulls silver prices down

Silver prices declined by Rs 120 to Rs 55,800 per kg in futures market today due to reduced offtake by traders on the back of a weak trend in the overseas markets.

Silver in international and domestic markets was dragged down by Eurozone concerns, which threatens to pull the euro down against the dollar. A firm dollar makes import of dollar-denominated commodities cheaper to import.

At the MCX, silver for delivery in May shed Rs 120, or 0.21%, to Rs 55,800 per kg in business turnover of 6,146 lots.

The July contract lost Rs 110, or 0.19%, to touch Rs 57,485 per kg in 286 lots.

Analysts believe, reduced offtake by traders on the back of a weakening global trend mainly led to decline in silver futures prices.
   
In the international markets, silver fell by 0.4% to $31.36 an ounce in Singapore.