India silver may hit new record

Silver futures traded 0.26 percent higher at 31,544 rupees per kg at 5:41 p.m.,falling from a record high of 31,507 rupees struck earlier in the day.

The contract had gained 7.9 percent in the previous month.

The outlook is positive in silver and would follow the foot-steps of gold,said Pranav Mer,senior analyst with Mangal Keshav Commodities.

Gold has been on an upswing as investors sought to hedge to protect their wealth from economic uncertainties in the U.S.,euro zone and elsewhere.

Buying could be done in silver at 30,300 for a target of 32,500 rupees,said Mer.

The white metal is usually influenced by gold as investors tend to treat all precious metals as one class. But the metal also takes a cue from base metals,particularly copper,as it is partly an industrial metal used in photography and electronics.

Festive demand in India could also support prices,analysts and traders said.

Demand in India,the world’s largest consumer,rises during the festive season,beginning with Raksha Bandhan in August and lasting through November with Dhanteras — the single-biggest gold buying day.