Wiping-off initial losses, silver prices recovered by 1.59 per cent to Rs 51,260 per kg in futures trade after participants created speculative position as rupee plunged to historic low.
However, weakness in the precious metals in the global market, limited the gains.
At the Multi Commodity Exchange, silver for delivery in September traded Rs 801, or 1.59 per cent higher at Rs 51,260 per kg in business turnover of 13,313 lots. It moved between Rs 50,005 and Rs 51,400 during the day.
On the similar lines, the white metal for delivery in far- month December after dipping to Rs 51,339, recovered sharply by Rs 771, or 1.30 per cent to Rs 52,425 per kg in 879 lots.
Analysts said the depreciating rupee which made imports costlier, helped silver futures to trade higher but a weak trend overseas as investors awaiting minutes from the US central bank's July policy meeting for clues on when it will begin scaling back its commodities-friendly stimulus steps, limited the gains.
Meanwhile, silver fell by 0.60 per cent to USD 22.86 an ounce in London today.