World silver prices opened the new trading week with a positive upward trend in the context that the market continues to monitor interest rate, USD and geopolitical factors.
According to records at 8:50 am on September 21 (Vietnam time), world silver prices increased by 0.75%, to 66.62 USD/ounce. The price increase took place after the precious metal maintained its recovery momentum in the last session of last week, despite the high interest rate environment.
The market is still in a state of tug-of-war between two groups of factors. On the one hand, US bond yields and expectations of tight monetary policy continue to put pressure on precious metals. On the other hand, concerns about inflation, geopolitical instability and asset safe-haven demand are creating support for silver prices.
After the US Federal Reserve (Fed) decided to raise interest rates by another 0.25 percentage points, the benchmark interest rate was raised to the 3.75% - 4% range. The yield of 10-year US Treasury bonds returned to around 5%, while the USD showed signs of strengthening.
Usually, high interest rates and the rising USD will be detrimental to non-performing assets such as silver. However, recent developments show that cash flow in the market is still interested in precious metals in the context of investors reassessing long-term risks related to inflation, public debt and global economic prospects.
Besides the monetary factor, the silver market is also affected by oil price movements and geopolitical tensions. The cooling of oil prices in recent sessions has somewhat reduced inflationary pressure, but risks related to energy supply in the Middle East region still maintain defense demand in the precious metals market.
Technically, silver prices are currently trading above the 66 USD/ounce zone and continue to move towards the important resistance zone around 66.70 USD/ounce. If this zone is surpassed, the upward momentum may be strengthened with the next target around 68 USD/ounce. Conversely, not maintaining the current support zone may put pressure on silver prices to adjust.
Domestic silver prices increase according to world prices
In the domestic market, silver prices also simultaneously went up in the first session of the week.
The price of 999 silver ingots of 1kg type at Ancarat Jewelry Company was traded at 58.596 - 60.406 million VND/kg (buying - selling), an increase compared to the previous level of 58.230 - 60.220 million VND/kg.
Meanwhile, the price of 999 silver ingots of 1kg type at Phu Quy Jewelry Group was listed at 59.786 - 61.626 million VND/kg (buying - selling), an increase of 400,000 VND/kg in both directions compared to 59.386 - 61.226 million VND/kg of the previous day.
Investors still need to closely monitor the difference between buying and selling prices, because this is a factor that can directly affect trading efficiency in the short term.
This week, the silver market is forecast to continue to focus on a series of important US economic data, including the S&P Global preliminary PMI index, the Swiss Federal Reserve's monetary policy decision, unemployment benefits data, durable goods orders, and the Michigan consumer sentiment survey.
This information may create more fluctuations for the USD, bond yields and thereby affect the trend of precious metals.
The article only updates the developments of the silver market and factors affecting precious metal prices, not investment recommendations.
