Domestic silver prices
As of 9:10 am on July 20, the price of 999 silver (1 tael) of DOJI Jewelry Group Joint Stock Company was listed at the threshold of 2.155 - 2.227 million VND/tael (buying - selling); an increase of 35,000 VND/tael on the buying side and an increase of 36,000 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 2.160 - 2.227 million VND/tael (buying - selling); an increase of 35,000 VND/tael on the buying side and an increase of 36,000 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 57.599 - 59.386 million VND/kg (buying - selling); an increase of 933,000 VND/kg on the buying side and an increase of 960,000 VND/kg on the selling side compared to yesterday morning.
World silver price
On the world market, as of 9:10 am on July 20 (Vietnam time), the world silver price was listed at 56.87 USD/ounce; an increase of 1.05 USD/ounce compared to yesterday morning.
Causes and forecasts
Silver prices reversed to increase, but still faced pressure after falling below the 60 USD/ounce mark due to rising fuel prices, stronger USD and expectations that the Fed will maintain tight monetary policy.
The short-term outlook for silver is still not really positive as the market is affected by the risk of inflation returning. Although the US producer price index (PPI) and inflation in June showed signs of cooling down, the upward momentum of energy prices may cause inflationary pressure to increase again. This reduces the possibility of the Fed soon easing monetary policy.
Monetary and precious metals analyst Muhammad Umair said that the market is still expecting the Fed to keep interest rates unchanged in the July meeting, but the possibility of raising interest rates in September is being assessed higher. This expectation has supported US government bond yields and the USD to rise, thereby reducing the attractiveness of silver.
In addition, geopolitical tensions in the Middle East continue to cause the energy market to fluctuate. High energy prices are anchored at high levels, increasing concerns about prolonged inflation, thereby creating more pressure on the silver market," he said.
According to Muhammad Umair, as long as the USD Index remains above the 100-point mark, silver prices are likely to face downward pressure. However, the decrease in manufacturing inflation in the US in June along with stable industrial production may partly limit the weakening momentum of this precious metal.
Technically, experts believe that silver prices are advancing into an important long-term support zone of 40-50 USD/ounce. This is an area that can attract buying power and create a foundation for a recovery in the medium and long term, with the goal of moving towards the 72 USD/ounce zone.
However, he noted that the short-term trend is still downwards. If silver prices break through the support zone of 40 USD/ounce, the market may continue to fall deeply to the 30 USD/ounce mark before finding a new balance point.
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