Silver price fluctuation 8. 5: Supported by many factors

Domestic silver prices

As of 9:05 am on May 8, the price of 999 silver (1 tael) of DOJI Jewelry Group Joint Stock Company was listed at 3.022 - 3.115 million VND/tael (buying - selling); an increase of 61,000 VND/tael on the buying side and an increase of 62,000 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 3.022 - 3.115 million VND/tael (buying - selling); an increase of 61,000 VND/tael on the buying side and an increase of 62,000 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 80.586 - 83.066 million VND/kg (buying - selling); an increase of 1.627 million VND/kg on the buying side and an increase of 1.653 million VND/kg on the selling side compared to yesterday morning.

World silver price

On the world market, as of 9:05 am on May 8 (Vietnam time), the world silver price was listed at 80.08 USD/ounce; an increase of 2 USD compared to yesterday morning.

Causes and forecasts

Silver prices increased sharply in Friday's trading session, showing that the market is trying to form a new rally. The main driving force comes from the downward trend of interest rates in the US, a factor that often supports non-profit assets such as silver.

According to Christopher Lewis - precious metals expert at FX Empire, with market developments, silver has broken through as US bond yields continue to fall. Investors are currently focusing on whether this precious metal can surpass the peak of April 17 around 83.50 USD/ounce or not.

Although the possibility of breaking the peak in the short term is not too clear, the downward trend of interest rates is still considered a positive supporting factor for silver prices," he said.

The expert believes that investors need to pay special attention to the yield of 10-year US government bonds. If yields continue to fall to the 4.30% or lower range, silver prices may be pushed up more strongly due to the increasing attractiveness of safe-haven assets.

In addition to the interest rate factor, expectations of the possibility of cooling down tensions in the Middle East are also improving risk-taking sentiment in the financial market. This creates more momentum for silver and many other commodities," Christopher Lewis said.

Technically, Christopher Lewis believes that if the silver price adjusts down, the nearest support zone is determined around 76.95 USD/ounce. The next support levels are 75 USD/ounce and 70 USD/ounce respectively. Among them, 70 USD/ounce is considered the important bottom of the market.

In the long term, silver may still be in the accumulation phase with a fluctuation range mainly from 70 - 90 USD/ounce" - Christopher Lewis assessed.

However, the silver market is still heavily affected by fluctuations in US bond yields and the interest rate policy of the US Federal Reserve (Fed).

Price movements in the near future may continue to fluctuate strongly, reflecting the cautious sentiment of investors in the face of changes in the global macroeconomy," Christopher Lewis added.