Silver futures up on short-covering

Silver prices rose by 0.50% to Rs 56,423 55,263 per kg in futures market today, mostly on the back of covering up of short positions by speculators, even as the metal dropped to three-week low in overseas markets.

At the Multi Commodity Exchange, silver for delivery in March rose by Rs 280, or 0.50%, to Rs 56,423 per kg, with a business turnover of 6,245 lots.

Similarly, the metal for delivery in May moved up by Rs 279, or 0.49%, to Rs 57,654 per kg, with a trade volume of 221 lots.

Market analysts said the recovery in silver prices at futures trade was mostly attributed to covering-up of short positions at prevailing levels by speculators but weakness in white metal overseas limited the gains.

 

Meanwhile, silver traded lower by 1.3% to $30.91 an ounce, the lowest level since November 21, in the Asian region as Europe's debt crisis boosted demand for the dollar as a haven, reducing appeal for precious metals.