Taking weak cues from overseas market, silver prices dropped by Rs 97 to Rs 38,495 per kg in futures trade Tuesday as participants cut down their bets.
Profit-booking at prevailing levels by speculators also weighed on silver prices.
At the Multi Commodity Exchange (MCX), silver for delivery in May was trading lower by Rs 97, or 0.25 per cent, at Rs 38,495 per kg in a business turnover of 918 lots.
In the international market, silver fell 0.06 per cent to $15.61 an ounce in New York on Tuesday.
Traders attributed the fall in silver prices at futures trade to a weak trend in precious metals in global markets and profit-booking by speculators.