Silver prices ended lower on Monday, as worries about economic slowdown in China weighed on investor sentiments.
Prices rebounded on Tuesday after posting its biggest one-day loss in a month on growing worries about another global economic downturn, but a weaker U.S. dollar and bargain hunting by jewelers provided support.
The prices may remain volatile as current global scenario like European debt concern, Middle East crisis, and weakness in dollar may consistently support safe haven demand for metal while signs of a cooling Chinese and US economy could weigh on prices due to industrial demand for silver.
China's consumer price inflation accelerated to a 34- month high of 5.5 percent in the year to May from 5.3 percent in April, fueling fears of further tightening and adding to risks for global growth.
The silver holdings in I Share silver trust fell 2.1 percent from Friday to Monday which may discourage investors to remain bullish in silver.
Investors are also awaiting a trail of U.S. data later in the day which could set the tone for bullions.
