Silver price at the close of the session on July 5th: Recovery but adjustment risk still present

Domestic silver prices

Below is an update on silver prices on websites at some domestic silver trading units. Data recorded at 5:00 PM on July 5th:

World silver price

As of 5:00 PM on July 5th (Vietnam time), the world silver price is listed at 62.27 USD/ounce.

Expert's opinion

Silver prices are showing remarkable recovery efforts after a period of strong fluctuations, but short-term prospects are still intertwined between supporting factors and adjustment risks.

In the last trading session of the week, spot silver prices increased sharply, at times fluctuating in the range of 60.80-63.02 USD/ounce. Recovering the 60 USD/ounce mark is seen as a positive psychological signal, in the context of the weakening USD after the US jobs report lower than expected.

Negative labor data reduced concerns that the US Federal Reserve (Fed) would soon raise interest rates, thereby supporting precious metals.

However, the yield of 10-year US government bonds remains around 4.5%, showing that pressure from high interest rates has not completely disappeared. The market is still considering the possibility of the Fed continuing to tighten policy this year if inflationary pressure returns.

Besides the monetary factor, developments in the energy market are also creating a relatively favorable environment for silver. Oil prices have retreated to near pre-conflict levels, reducing the risk of a new inflation shock from energy. Therefore, silver fluctuations are now more dependent on the direction of the USD, bond yields and Fed policy expectations rather than safe-haven demand due to geopolitical tensions.

Technically, the 64-64.5 USD/ounce zone is being considered an important resistance level. If it surpasses and maintains above this area, silver prices may expand their gains and move towards higher areas. Conversely, the 60.05 USD/ounce mark is a near support area to be monitored. Losing this mark may cause selling pressure to return, with the next support areas around 58 and 55 USD/ounce.

However, investors still need to be cautious. After once increasing more strongly than gold, silver has undergone deeper adjustments because it is both a precious metal and depends on industrial prospects and the risk appetite of the market. The correlation between gold and silver also shows that gold is trending stronger.

In the short term, silver prices may continue to fluctuate strongly. The ability to maintain above the 60 USD/ounce zone and conquer the 64-64.5 USD/ounce area will be an important signal determining whether the current recovery period can be prolonged or not.