Domestic silver price
As of 9:25 a.m. on November 28, the price of 999 Phuc Loc 999 gold bars (1 tael) of Saigon Thuong Tin Bank Gold and Gemstone One Member Co., Ltd. (Sacombank-SBJ) was listed at 2.016 - 2.067 million VND/tael (buy - sell); an increase of 15,000 VND/tael in both directions compared to yesterday morning.
At the same time, the price of 999 coins (1 tael) at Phu Quy Jewelry Group was listed at 2.047 - 2.110 million VND/tael (buy - sell); an increase of 18,000 VND/tael in both directions compared to yesterday morning.
The price of 999 taels of silver (1kg) at Phu Quy Jewelry Group was listed at VND54.586 - 56.266 million/kg (buy - sell); an increase of VND480,000/kg in both directions compared to yesterday morning.
World silver price
On the world market, as of 9:25 a.m. on November 28 (Vietnam time), the world silver price was listed at 53.94 USD/ounce; up 1.12 USD compared to yesterday morning.
Causes and predictions
The market context is increasingly believing that the US Federal Reserve (FED) will conduct an interest rate cut in December, which is supporting silver prices.
According to FX Empire precious metals analyst James Hyerczyk, that sentiment was reinforced when a series of US employment data showed signs of weakness, from slowing recruitment to higher-than-expected unemployment claims.
Expectations of falling interest rates quickly spread to financial markets such as sharp declines in bond yields, weak USD, and capital flows to benefit from the low interest rate environment. "This is an ideal condition for silver - which is both an industrial metal and a protective asset - to further strengthen the rally that has been forming since the beginning of the month," said James Hyerczyk.
The expert added that the current supply of silver is not keeping up with demand. Mining output has decreased by about 7% since 2016, and the market is facing a supply deficit for the seventh consecutive year. This makes it difficult for prices to fall sharply because industrial buyers cannot delay demand.
"The general trend is still leaning towards a positive long-term view. However, after a year of up to 80% increase, profit-taking can take place quickly when prices fluctuate strongly. Investors can expect buying momentum to return as soon as prices fall, along with major fluctuations if liquidity decreases sharply" - James Hyerczyk expressed his opinion.
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