Silver prices on Tuesday surged by Rs 1,295 to Rs 55,300 per kg in futures trade as participants widened their bets on firm spot demand and global cues.
On the Multi Commodity Exchange, silver contracts for September gained Rs 1,295, or 2.4 per cent, to Rs 55,300 per kg in 18,458 lots.
Analysts said the rise in silver prices was mostly on the back of fresh positions built up by participants on a positive domestic trend.
Silver was trading up by 2.69 per cent at USD 20.74 an ounce in New York.