Silver price at the close of the session on August 4th: Supported, simultaneously increased

Domestic silver prices

World silver price

As of 7:30 PM, world silver prices increased sharply by 2.25% to the threshold of 59.36 USD/ounce.

Silver price forecast

Silver prices are being supported as US bond yields and the USD index weaken, thereby reducing the opportunity cost of holding non-performing precious metals. The sharp drop in crude oil prices also partly eases concerns about inflation, causing pressure from monetary policy on the gold and silver markets to temporarily cool down.

Although the US Federal Reserve (Fed) kept interest rates unchanged in the most recent meeting, the operating view is still leaning towards caution. The possibility of interest rates continuing to be adjusted upwards is not completely ruled out if inflation remains high. This will be a factor that will cause silver prices to fluctuate sharply in the near future, especially in the face of new reports on jobs, inflation and manufacturing activity in the US.

Developments related to the US and Iran are also creating a two-way impact. Dialogue signals reduce immediate shelter demand, but the risk of tension in the Strait of Hormuz has not been eliminated. If negotiations do not make progress, defensive cash flow may return to the precious metals market.

Conversely, if tensions continue to cool down, silver prices will depend more on bond yields, the USD and the outlook for industrial demand.

Compared to gold, the outlook for silver is more complex because this metal is both an investment asset and widely used in manufacturing. Industrial activity slowing down may limit the upward momentum, even if the monetary environment becomes more favorable.

Technically, the 59.14-60.09 USD/ounce zone is a noteworthy resistance area. If it is surpassed and maintained above this zone, the silver price may head to 60.99 USD/ounce, and further to 64 USD/ounce. Conversely, falling below 57.82 USD/ounce may bring the price back to the 56.68 USD/ounce zone.

In the medium term, Sucden Financial forecasts silver to fluctuate in the range of 56-66 USD/ounce by the end of September. Corrections in the area between the 50 USD/ounce zone may attract buying power, but current macroeconomic conditions are not favorable enough for prices to maintain long-term at the upper threshold of the forecast zone.