Silver price at the close of the session on July 20th: Under pressure

Domestic silver prices

Below is an update on silver prices on websites at some domestic silver trading units. Data recorded at 6:00 PM on July 20:

World silver price

As of 5:30 PM on July 16 (Vietnam time), the world silver price is listed at 56.72 USD/ounce.

Silver price forecast

Silver prices continue to face pressure in the new trading session as the precious metal market is dominated by concerns about inflation, US interest rate outlook and tense developments in the Middle East. Although still supported by safe-haven demand, silver has not found strong enough momentum to return to the upward trend.

One of the important factors affecting silver prices today is the monetary policy expectation of the US Federal Reserve (Fed). In the context of energy prices tending to increase again due to geopolitical tensions, the market is concerned that inflationary pressure may prolong, causing the Fed to maintain a cautious stance on interest rates.

High interest rates are often detrimental to precious metals such as silver because they increase the opportunity cost when holding assets that do not generate cash flow. In addition, the strong USD also makes silver less attractive to international investors using other currencies.

Developments in the Middle East continue to be an unpredictable factor for the silver market. New tensions may create support in the short term as investors seek defensive assets. However, if conflict causes oil prices to rise sharply, the opposite effect may appear when the market is concerned about rising inflation and the Fed must keep interest rates high longer.

In addition to financial factors, physical demand is also becoming a noteworthy point. Some signals show that the demand for buying silver bars and coins is weakening during the price adjustment period, reflecting the cautious psychology of individual investors after a period of strong fluctuations.

However, the long-term prospects of silver still receive support from industrial demand, especially in the fields of renewable energy, solar panel production, electronics and high technology. Silver supply is also difficult to expand rapidly because most of the current output comes from the mining of other metals such as copper, lead and zinc.

Technically, silver prices are facing downward pressure as they cannot regain important resistance zones around 59-60 USD/ounce. If selling pressure continues to increase, the support zone near 56 USD/ounce will be noticed by the market. Conversely, to create recovery momentum, silver needs to overcome technical resistance zones and receive more positive signals from US monetary policy.