On December 1, world silver prices increased to a record level, supported by the ongoing tightening of supply and growing expectations of interest rate cuts in the US this month.
The white metal was traded at more than $57 an ounce, surpassing the previous high reached on November 28, when prices soared nearly 6%. The market is pricing in the possibility of a 0.25 percentage point interest rate cut in December as a certainty, based on the continuous weakness of the US labor market and a series of dovish comments from officials of the US Federal Reserve (FED).
Silver prices are also supported by new concerns about scarcity in the global market. The cost of borrowing the metal for more than a month remains high, although a record amount of silver is being circulating to ease the tightening of supply.
Other exchange rates are also under pressure; data from the exchange shows that silver inventories in warehouses linked to the Shanghai Future Exchange have recently hit a nearly decade low.
Silver prices have risen 0.8% to 56.9180 USD/ounce. Palladium and platinum also increased in price. Meanwhile, gold prices fell 0.4% at $4,222.87/ounce as of the morning of December 1. The Bloomberg Dollar spot index ended on November 28 down 0.1%.
In the domestic market, silver prices in Vietnam on the morning of December 1 remained at the high level of the previous session. Phu Quy Jewelry Group kept the same buying and selling prices for 999 gold bars at VND 2,118,000/tael and VND 2,184,000/tael, respectively.
At business locations in Hanoi, 99.9% of silver is traded around VND1,841,000/tael for buying and VND1,871,000/tael for selling.
In Ho Chi Minh City, the price is equivalent to 1,843,000 - 1,877,000 VND/tael.
Silver 99.99% is listed at 1,849,000 - 1,879,000 VND/tael in Hanoi and 1,851,000 - 1,881,000 VND/tael in Ho Chi Minh City.
In particular, Phu Quy's 999 1kg gold bullion was listed at 56,479,859 VND for buying and 58,239,854 VND for selling, stable compared to November 30.
