Silver futures closed higher in the domestic market on Tuesday as investors and speculators booked fresh positions in the precious metal tracking a bullish trend overseas as a weaker dollar bolstered the lure for the bullion as an alternative asset.
Weaker dollar makes the precious metal cheaper for those holding other currencies, thus boosting silver demand. Further, soft US economic data raised speculation that the US Federal Reserve may hold off further tightening of interest rates in the near-term, bolstering the lure for silver as a store of value.
At the MCX, Silver futures for September 2016 contract closed at Rs 48,090, per 1 kg, up by 0.78 per cent after opening at Rs 47,679, against the previous closing price of Rs 47,717. It touched the intra-day high of Rs 48,445.