Silver price fluctuation July 28: Under downward pressure as investors look forward to the Fed meeting

Domestic silver prices

As of 9:35 am on July 28, the price of 999 silver (1 tael) of DOJI Jewelry Group Joint Stock Company was listed at the threshold of 2.122 - 2.193 million VND/tael (buying - selling); down 89,000 VND/tael on the buying side and down 92,000 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 2.127 - 2.193 million VND/tael (buying - selling); down 89,000 VND/tael on the buying side and down 92,000 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 56.719 - 58.479 million VND/kg (buying - selling); down 2.374 million VND/kg on the buying side and down 2.454 million VND/kg on the selling side compared to yesterday morning.

World silver price

On the world market, as of 9:35 am on July 28 (Vietnam time), the world silver price was listed at 57.29 USD/ounce; down 2.34 USD/ounce compared to yesterday morning.

Causes and forecasts

Silver prices rose slightly in the first session of the week as pressure from fuel prices, US bond yields and the USD simultaneously cooled down. However, the upward momentum is still quite cautious as the market is waiting for the results of the meeting of the US Federal Reserve (Fed).

According to precious metals analyst James Hyerczyk, the sharp drop in fuel prices after tensions in the Middle East showed signs of cooling down has dragged down US government bond yields, thereby reducing pressure on precious metals, including silver.

Spot silver prices have successfully tested the short-term support zone of 57.13 - 57.85 USD/ounce. However, buying power is not strong enough to help prices break through when many investors choose to stand aside and observe before the Federal Open Market Committee (FOMC) meeting.

According to experts, to strengthen the upward trend, silver prices need to surpass the nearest resistance level of 60.94 USD/ounce. If successfully conquering this threshold, the price may head towards the 63.28 USD/ounce zone, and further to the 65.07 USD/ounce level.

In the opposite direction, if the price falls below 57.06 USD/ounce, selling pressure may increase, pulling silver back to test the support zone of 54.77 USD/ounce. In case this level is broken, the price is at risk of falling further.

Mr. Hyerczyk said that although fuel prices have cooled down, geopolitical risks have not completely disappeared. According to the expert, the decisive factor in the trend of silver prices this week will be the message from the Fed after the monetary policy meeting. The market almost predicts that the Fed will keep interest rates unchanged, but investors will focus on signals from the Fed to assess inflation prospects and policy management roadmap in the coming time.

If the Fed sends tougher signals on inflation, bond yields and the USD may rise again, thereby putting pressure on silver prices. Conversely, if the message is more moderate and does not increase expectations of tight monetary policy, silver will have the opportunity to extend its recovery momentum," he said.

In addition to the Fed meeting, US GDP data and the PCE inflation index released at the end of the week are also considered important factors, which can confirm or change market expectations for monetary policy and the trend of silver prices in the short term.