Silver futures down over 1% on weak global cues

Silver futures prices fell by 1.15% to Rs 55,205 per kg today, after traders reduced their positions amid a weak trend in global markets.

On the Multi Commodity market, the December silver fell sharply by Rs 641, or 1.15%, to Rs 55,205 per kg, with a business turnover of 2,506 lots.

The March contract lost Rs 632, or 1.10%, to Rs 56,906 per kg, with a business volume of 259 lots.

Market analysts attributed the steep fall in silver futures prices to a subdued trend in overseas markets, as the dollar's strength against the euro on worries in the euro-zone on debt crisis, tempered demand for precious metals as alternative investments.

Meanwhile, silver in the Asian region fell by 0.09% to $31.73 an ounce in the morning trade today.