Recorded at 11:00 AM on September 19 (Vietnam time), world silver prices increased by 1.6%, to 66.13 USD/ounce. This precious metal is maintaining its increase in the week, in the context of investors considering between interest rate expectations of the US Federal Reserve (Fed), energy market developments and geopolitical risks.
The increase in silver in the last session of the week took place when crude oil prices fell, thereby partly easing concerns about inflationary pressure. Brent oil ended the session at 104.87 USD/barrel, down 0.93%, while WTI oil fell to 100.30 USD/barrel, down 1.58%.
Cooling oil prices help reduce input cost pressure on the economy, while creating conditions for precious metals to recover. However, the silver market is still affected by the rebound in US bond yields and a stronger USD.
After the latest monetary policy decision, the Fed has raised interest rates by another 0.25 percentage points, bringing the interest rate band to 3.75-4%. The market is currently continuing to monitor the possibility of the Fed maintaining a tightening policy in the near future.
The yield of 10-year US government bonds has rebounded to around 5%, while the yield of 2-year bonds has also reached the highest daily level since July 2024. High yields often put pressure on non-performing assets such as silver, because they increase the opportunity cost when holding precious metals.
However, silver still receives support from shelter demand in the context of existing geopolitical risks. Developments related to the transportation route through the Strait of Hormuz continue to affect market sentiment, as investors are concerned about the risk of energy supply disruption and impact on global inflation.
The market is turning its attention to the resistance zone near 66.70 USD/ounce. If it surpasses this level, silver may head to higher price zones around 68 USD/ounce and 70 USD/ounce.
In the opposite direction, the important support zone is being monitored around 64.88 USD/ounce. If silver prices fall below this area, selling pressure may increase with the next support zones around 63.60 USD/ounce and 62.97 USD/ounce.
Currently, the diễn biến of silver still depends on the balance between many factors: Fed interest rate policy, the strength of the USD, US bond yields, oil prices and geopolitical instability. In the short term, the decrease in oil prices is supporting market sentiment, but the high yield level is still a factor limiting the upward momentum of precious metals.
Currently, investors are waiting for more signals about the direction of US monetary policy as well as new economic data.
Update on domestic silver prices
The article only updates the developments of the silver market and factors affecting precious metal prices, not investment recommendations.
