Silver price fluctuation 2. 9: Inverting downwards, under a lot of pressure

Domestic silver prices

As of 9:30 am on September 2, the price of 999 silver (1 tael) of DOJI Jewelry Group Joint Stock Company was listed at the threshold of 2.202 - 2.299 million VND/tael (buying - selling); down 84,000 VND/tael on the buying side and down 87,000 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 2.179 - 2.246 million VND/tael (buying - selling); down 75,000 VND/tael on the buying side and down 78,000 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 58.106 - 59.893 million VND/kg (buying - selling); down 2 million VND/kg on the buying side and down 2.08 million VND/kg on the selling side compared to yesterday morning.

World silver price

On the world market, as of 9:30 am on September 2nd (Vietnam time), the world silver price was listed at 63.59 USD/ounce; down 2.94 USD/ounce compared to yesterday morning.

Causes and forecasts

Silver prices have fallen below the threshold of 65.50 USD/ounce, amid increased market concerns about the possibility of the US maintaining tight monetary policy. High interest rates are often detrimental to precious metals such as silver because this is an asset group that does not bring fixed income.

According to market analyst Ghiles Guezout of FXStreet, pressure on silver prices increased after tough statements by US Federal Reserve (Fed) Chairman Kevin Warsh at the Jackson Hole Symposium on August 28. He said interest rates may need to be increased if inflation does not decrease as expected.

These assessments caused investors to adjust their forecasts for the Fed's interest rate policy. In addition, rising energy prices also raised concerns that inflation may return.

Tensions in the Middle East are supporting oil prices, thereby increasing the risk of energy costs continuing to rise. If price pressures persist, the Fed may have more reason to maintain cautious monetary policy or even consider raising interest rates. This is a factor putting pressure on silver prices in the short term.

However, the market is still waiting for more US economic data before making new forecasts about the Fed's moves.

On September 2nd, the US Institute for Supply Management (ISM) is expected to release the August manufacturing PMI index. Along with that, the JOLTS report on the number of jobs recruited and the labor turnover rate is also being monitored by investors to assess the health of the US labor market.

The more notable focus will be the non-farm payroll (NFP) report released on September 4. This is one of the important data that could affect the Fed's decision in the September meeting.

If job data shows that the US economy still maintains strength, the market may increase expectations that the Fed will continue to tighten monetary policy. At that time, the USD is likely to be supported and silver prices may continue to be under pressure.

Conversely, if the labor market shows clear signs of weakening, expectations for the Fed's tough policy may decrease. This may create more room for recovery for silver prices in the near future.