Silver futures rose during afternoon trade in the domestic market on Friday as investors and speculators extended their positions in the precious metal on weakness in greenback, but gains were limited on expectations of more rate hikes by the US Federal Reserve next year.  

The US Fed raised US interest rates earlier in December for the first time in a year and signalled three more increases next year. Precious metals are highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets, while boosting the dollar, in which it is priced. 

At the MCX, silver futures for March 2017 contract is trading at Rs 39,697 per kg, up by 0.19 %, after opening at Rs 39710, against a previous close of Rs 39621. It touched the intra-day high of Rs 39800.