Domestic silver prices
Below is an update on silver prices on the website at some domestic silver trading units. Data recorded at 6:15 PM on June 30th:
World silver price
As of 6:20 PM on June 30 (Vietnam time), the world silver price was listed at 58.9 USD/ounce; showing signs of slight recovery during the day.
Expert's opinion
Looking back at the overall picture, the precious metals market, including gold and silver, is facing a stormy trading quarter, which analysts assess as the strongest quarterly decline since mid-2013.
The main reason hindering the increase in silver prices comes from the pressure of the greenback and the trend of monetary tightening. The USD has become a bright spot in the foreign exchange market this quarter when it increased by 1.4% against the main currency basket.
The solidity of the USD, accompanied by expectations that the US Federal Reserve (Fed) will continue its interest rate hike path, has dealt a strong blow to the attractiveness of the precious metal.
Data from the CME FedWatch tool indicates that the market is betting 64% on the possibility that the Fed will conduct an interest rate hike in September.
Assessing the movement of cash flow, analyst Ole Hansen from Saxo Bank said that investor sentiment is currently very fragile. Different from trading behavior in recent years, investors in the precious metals market are currently prioritizing the strategy of "selling when prices increase" instead of "buying when prices decrease".
In addition, the high energy price anchor has reinforced the scenario that central banks must maintain tight monetary policy. Interest rates continue to anchor at high levels, increasing the opportunity cost to hold non-profit assets such as silver, reducing the position of this metal compared to bonds or cash, despite the fact that silver is considered a traditional safe haven channel to combat inflation.
The next upward price target for spot silver is to push prices back to exceed the 59.58 USD/ounce to 61.51 USD/ounce zone; if it breaks through this zone, the target will be 62.38 USD/ounce and then 65.97 USD/ounce.
Conversely, the next downward price target of the downward price side is to push the price to break the 55.70 USD/ounce mark, with deeper downward targets at 54.49 USD/ounce and then 54.23 USD/ounce.
The first level of resistance is seen at $59.58/ounce and next at $61.51/ounce. The nearest support lies at $55.70/ounce and then $54.49/ounce.
In the upcoming trading sessions, the focus of global market attention will be on important US economic jobs data, including the ADP report and the non-farm payrolls.
At the same time, investors are also closely following the statements of Fed Chairman, Mr. Kevin Warsh, at the annual meeting of the European Central Bank (ECB) in Sintra, Portugal, in order to seek clearer signals on the direction of monetary policy in the late year.
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