Silver futures extend gains on global cues, spot demand

NEW DELHI: Supported by firming overseas trend, silver continued its winning streak and prices rose up to 0.91 per cent on Wednesday.

Strong demand in spot markets ahead of diwali also supported the rise in prices.

At the MCX counter, silver for far-month May contract gained 0.91 per cent to Rs 27,894 per kg with business turnover in 3 lots.

Similarly, silver for delivery in March rose by 0.31 per cent to Rs 27,756 per kg in 241 lots, while December contract edged up by 0.36 per cent to Rs 27,596 per kg in 8,502 lots.

Market analysts said apart from firming trend in global markets where the metal traded at almost 18 dollar an ounce, strong domestic demand in spot markets also boosted trading sentiments in silver at futures market.

"People generally buy precious metals - gold and silver - on account of diwali, giving push to rising prices" said analyst Shree Bhagwan.

Meanwhile, silver at Mumbai bullion market traded higher at Rs 28,150 per kg.