Domestic silver prices
As of 9:00 am on August 30, the price of 999 silver (1 tael) of DOJI Jewelry Group Joint Stock Company was listed at the threshold of 2.226 - 2.314 million VND/tael (buying - selling); down 114,000 VND/tael on the buying side and down 136,000 VND/tael on the selling side compared to a week ago.
At the same time, the price of 999 silver bars (1 tael) at Phu Quy Jewelry Group was listed at the threshold of 2.206 - 2.274 million VND/tael (buying - selling); down 123,000 VND/tael on the buying side and down 139,000 VND/tael on the selling side compared to a week ago.
The price of 999 silver ingots (1kg) at Phu Quy Jewelry Group is listed at 58.826 - 60.639 million VND/kg (buying - selling); down 3.28 million VND/kg on the buying side and down 3.707 million VND/kg on the selling side compared to a week ago.
World silver price
On the world market, as of 9:00 AM on August 30 (Vietnam time), the world silver price was listed at 66.28 USD/ounce; down 2.69 USD/ounce compared to a week ago.
Causes and forecasts
Spot silver prices fell more than 4% in the last session of the week, after US Federal Reserve (Fed) Chairman Kevin Warsh said at the Jackson Hole conference that the Fed still has much work to do to control inflation.
Mr. Kevin Warsh believes that the Fed may have to maintain a more cautious monetary policy if policymakers are not confident enough that core inflation is returning to the target level. He also noted that the current financial conditions are not too tight.
According to precious metals analyst James Hyerczyk, the decrease of more than 4% in silver shows that this metal is not only affected by interest rate expectations. Other factors, including a sharp increase in the USD and concerns about industrial demand, are also putting pressure on silver prices.
After the speech, US government bond yields for the 2-year term and the USD index simultaneously increased.
The market also quickly adjusted expectations about the Fed's interest rate policy. The market's probability of forecasting the Fed to raise interest rates in September increased from 35.4% to 57.5% after just one trading session.
Besides the impact of monetary policy, silver also bears risks from industrial demand. According to expert James Hyerczyk, silver demand in some Asian markets is showing signs of weakening.
Weaker regional demand, along with the Fed's tough statements and the rise of the USD, has lost the supporting factors that once helped gold and silver prices maintain their upward momentum," he said.
Silver prices ended the week with the sharpest drop since mid-July. The interest rate market is currently putting pressure on the outlook for the precious metal, while concerns about industrial demand continue to emerge.
The information in the article only reflects market developments, not investment recommendations. Investors need to carefully consider risk factors before making a decision.
See more news related to silver prices HERE...
