Silver plummets sharply from its peak.

Today, silver prices fell sharply, breaking below the $50/ounce mark. In five days, global silver prices have dropped 8.6%, while domestic silver prices have also fallen by about 7% from their peak set on October 16th.

Today (October 21), world silver prices are only $49.7 per ounce, down 5% in the past 24 hours and down 8.6% since the peak reached on October 16 ($54 per ounce).

Domestically, Phu Quy silver also fell today to 1.909 million VND/ounce (buying price) and 1.968 million VND/ounce (selling price), a decrease of nearly 7% compared to the highest price on October 16th.

Thus, world silver prices experienced their sharpest daily decline in the past six months. Currently, analysts still hold two opposing views on the direction of silver prices. Some believe this is just a short-term pause, while others believe it is the beginning of a downward price cycle.

This sharp drop in silver prices is attributed to the easing of US-China tensions following reassuring remarks from US President Donald Trump, which reduced demand for the precious metal as a safe haven.

Furthermore, positive earnings results from regional banks in the US helped stabilize the stock market, putting downward pressure on gold and silver. The shortage of physical silver also eased, calming the silver rush. In addition, technical indicators suggest that the silver market is in overbought territory after a prolonged price increase.

According to precious metals analyst Christopher Lewis, after a period of significant volatility, the market is undergoing a natural correction, needing more time to consolidate and trade sideways to create a more solid foundation for the next upward move.

"The $50/ounce level is considered a crucial support zone, not only for technical reasons but also for its psychological significance for investors. Meanwhile, the $54/ounce level is a major barrier that could limit the short-term upward momentum of this metal," he said.

Christopher Lewis argues that when herd mentality builds and people start lining up to buy silver, it's often a sign that the market is approaching a short-term peak and a warning sign of a price bubble.

Despite the drop in silver prices, many investors remain optimistic in the medium and long term, especially if the US Federal Reserve (Fed) aggressively cuts interest rates. Strong industrial demand for silver and a persistent supply shortage are also factors supporting long-term silver prices.

Analysts recommend that investors monitor US Treasury yields, USD strength, and global geopolitical developments to respond promptly to fluctuations in silver prices.

Source: https://baodautu.vn/bac-lao-doc-manh-tu-dinh-d418159.html