Silver futures closed higher in the domestic market on Tuesday after the release of a very downbeat U.S. ISM non-manufacturing report for August. The weaker-than-expected ISM report comes on the heels of a slightly downbeat U.S. jobs report for August, which was released last Friday. This recent U.S. economic data plays right into the hands of the U.S. monetary policy doves, who do not want to see the Federal Reserve raise interest rates any time soon. Such a scenario would also be bullish for the precious metals markets.
At the MCX, Silver futures for December 2016 contract closed at Rs 47,606, per 1 kg, up by 2.46 per cent after opening at Rs 46,465, against the previous closing price of Rs 46,463. It touched the intra-day high of Rs 47,694.