Domestic silver prices
As of 9:30 am on June 8, the price of 999 silver (1 tael) of DOJI Jewelry Group Joint Stock Company was listed at 2,554 - 2,638 million VND/tael (buying - selling), down 8,000 VND/tael on the buying side and down 8,000 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 2.559 - 2.638 million VND/tael (buying - selling), down 8,000 VND/tael on the buying side and down 8,000 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 68.239 - 70.346 million VND/kg (buying - selling), down 214,000 VND/kg on the buying side and down 213,000 VND/kg on the selling side compared to yesterday morning.
World silver price
On the world market, as of 9:30 am on June 8 (Vietnam time), the world silver price was listed at 67.7 USD/ounce.
Causes and forecasts
World gold and silver prices simultaneously plummeted as the US released a more positive-than-expected May jobs report. This data increased expectations that the US Federal Reserve (Fed) would maintain interest rates at a higher level for longer, thereby pushing Treasury bond yields and the USD to rise sharply, putting pressure on the precious metals group.
According to a report by the US Department of Labor, the country's economy created 172,000 jobs in May, higher than market expectations, while the unemployment rate remained at 4.3%. The driving force for job growth came from the fields of accommodation services, entertainment, local government and healthcare. Conversely, jobs in the financial sector decreased by 22,000 positions.
According to Kitco, positive labor data has reduced expectations of the Fed's ability to cut interest rates soon. This has caused investors to strongly sell gold and silver, while shifting cash flow to the USD and US Treasury bonds.
Besides economic factors, the market is still closely monitoring geopolitical developments in the Middle East. However, the energy commodity group cooled down in the last session of the week as investors expected that relevant parties could find solutions through diplomatic negotiations. This partly reduced the demand for holding gold as a safe haven asset" - the analysis group at Kitco said.
In the financial market, US stock indexes simultaneously fell sharply due to high bond yields. In other markets, the USD index continued to rise, while the yield of 10-year US Treasury bonds increased to over 4.53%, the highest level in many weeks. These are considered unfavorable factors for gold and silver because they increase the opportunity cost of holding non-performing assets.
Technically, analysts at Kitco believe that the 71 - 72 USD/ounce zone is an important resistance level for silver. If it surpasses this price range, silver may head to higher levels around 76 - 78 USD/ounce. Conversely, if selling pressure continues to increase, silver prices may fall back to the support zones of 65 - 66 USD/ounce, even lower in the 60 - 61 USD/ounce area.
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