Domestic silver prices
As of 9:40 am on April 20, the price of Kim Phuc Loc 999 silver bars (1 tael) of Saigon Thuong Tin Commercial Joint Stock Company Limited (Sacombank-SBJ) was listed at the threshold of 3.003 - 3.093 million VND/tael (buying - selling); an increase of 21,000 VND/tael in both directions 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 3.019 - 3.112 million VND/tael (buying - selling); down 15,000 VND/tael on the buying side and down 16,000 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 80,506 - 82,986 million VND/kg (buying - selling); down 400,000 VND/kg on the buying side and down 427,000 VND/kg on the selling side compared to yesterday morning.
World silver price
On the world market, as of 9:50 am on April 20 (Vietnam time), the world silver price was listed at 80.23 USD/ounce; down 0.6 USD compared to yesterday morning.
Causes and forecasts
Silver prices continuously fluctuate, but the developments are still quite positive. This upward momentum is driven by a combination of three main factors: cooling geopolitical situation, falling oil prices and weakening the USD.
First of all, the fact that Israel and Lebanon reached a 10-day ceasefire agreement has helped the financial market become less worried. At the same time, fuel prices are also falling. When these two factors occur at the same time, inflationary pressure decreases, causing many people to believe that central banks may soon cut interest rates.
According to precious metals analyst James Hyerczyk of FX Empire, silver is different from gold, not only a safe haven asset but also plays an important role in industrial production. This metal is widely used in fields such as solar energy, electronics and electric vehicles. "Therefore, as economic prospects become more stable and cost of capital may decrease, demand for silver is further supported," he said.
The third factor - and also considered the most important - is the weakening of the USD. The greenback index has hit a six-week low, making silver cheaper for investors holding other currencies.
In the short term, the outlook for silver prices still depends on the movement of the three factors mentioned above. If the USD recovers strongly, the market may witness increased selling pressure" - James Hyerczyk said.
The expert added that the rebound in fuel prices could raise concerns about inflation and negatively affect expectations of monetary policy easing. In addition, if geopolitical tensions increase, the outlook for industrial demand for silver could rapidly weaken.
Technically, to continue the upward trend, silver prices need to surpass the key resistance level at 83.61 USD/ounce. If successful, the market may head towards a higher target range of 91.34 - 98.48 USD/ounce" - James Hyerczyk said.
Conversely, James Hyerczyk said that if selling pressure returns right from the beginning of the week, a downward trend may be activated. At that time, the next support levels to be monitored will be at 74.63 USD/ounce, 72.03 USD/ounce and deeper at 69.40 USD/ounce.
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