Silver price fluctuation July 18: Rising in the last session of the week

Domestic silver prices

As of 9:00 AM on July 18, the price of 999 silver (1 tael) of DOJI Jewelry Group Joint Stock Company was listed at the threshold of 2.120 - 2.191 million VND/tael (buying - selling); an increase of 42,000 VND/tael on the buying side and an increase of 44,000 VND/tael on the selling side compared to yesterday morning.

At the same time, the price of 999 silver bars (1 tael) at Phu Quy Jewelry Group was listed at the threshold of 2.125 - 2.191 million VND/tael (buying - selling); an increase of 44,000 VND/tael on the buying side and an increase of 46,000 VND/tael on the selling side compared to yesterday morning.

The price of 999 silver ingots (1kg) at Phu Quy Jewelry Group is listed at the threshold of 56.666 - 58.426 million VND/kg (buying - selling); an increase of 1.173 million VND/kg on the buying side and an increase of 1.227 million VND/kg on the selling side compared to yesterday morning.

World silver price

On the world market, as of 9:10 am on July 18 (Vietnam time), the world silver price was listed at 55.82 USD/ounce; up 0.93 USD/ounce compared to yesterday morning.

Causes and forecasts

World silver prices recovered in the last session of the week after a period of deep decline. However, analysts believe that this development mainly stems from the activity of buying off short selling positions and there is not enough basis to confirm a new upward trend.

Previously, silver prices were under pressure as investors assessed a series of new US economic data. Although inflation showed signs of cooling down, indicators of retail, employment and manufacturing still showed that the US economy maintained good resilience. This reduced expectations that the US Federal Reserve (Fed) would soon cut interest rates, thereby continuing to put pressure on the silver market.

According to analysts, the diễn biến of the precious metal market is being interspersedly affected by US economic data. Consumer price index (CPI) and producer price index (PPI) both decreased in June, showing that inflationary pressure continues to cool down. However, other economic data is still positive, making the Fed not under much pressure to ease monetary policy.

Precious metals analyst Christopher Lewis said that the silver market is still experiencing a period of strong fluctuations with unstable investor sentiment. According to him, the current downward trend makes the short-term outlook for silver less positive, and at the same time, recovery phases, if any, are likely to be only technical and difficult to maintain for a long time.

According to Christopher Lewis, on the weekly chart, silver prices previously set a new bottom, showing that the downward trend still prevails. He believes that the current recovery is mainly technical and not enough to confirm a new upward trend.

Experts also believe that price increases in the near future may face selling pressure when prices are around the threshold of 55 USD/ounce. One of the factors putting pressure on silver is that US bond yields are maintained at a high level, making profitable assets more attractive than non-rotating precious metals such as silver and gold.

However, Christopher Lewis noted that the 50 USD/ounce area may play a role as an important support zone. This has been a strong resistance level in many historical periods since the 1970s. Therefore, the diễn biến of silver prices when moving towards this zone will be a watchable factor to assess the market's ability to find a balance point or form a new trend.