Silver futures down 1.34% on subdued demand

Silver prices fell sharply by 1.34% to Rs 56,076 per kg in futures trading today as speculators reduced their positions, largely in tandem with a weakening trend in precious metals overseas.

At the Multi Commodity Exchange, silver for delivery in July declined by Rs 762, or 1.34% to Rs 56,072 per kg, with a business turnover of 4,846 lots.

In a similar fashion, the white metal for delivery in September shed Rs 755, or 1.31% to Rs 56,825 per kg in 229 lots.

Analysts attributed the fall in silver futures prices to a weakening trend in global markets on speculations that Greece's debt crisis is closer to being resolved, curbing the demand for the metal as a protection of wealth.

Besides, subdued demand at prevailing high levels at the domestic spot markets also influenced the prices, they said.

Meanwhile, silver prices fell 4.29% to $3,682 per ounce in the previous session in New York.