Silver plunged from the peak

Today (October 21), world silver is only 49.7 USD/ounce, down 5% in the past 24 hours and has decreased 8.6% since the peak reached on October 16 (54 USD/ounce).

Domestically, Phu Quy silver today also decreased to 1.909 million VND/tael (buy) and 1.968 million VND/tael (sell), down nearly 7% compared to the highest price on October 16.

Thus, world silver has had the strongest one-day decline in the past 6 months. Currently, analysts still have two views on the path of silver prices. Accordingly, some opinions say that this is just a short-term pause, but others say that this is the beginning of a cycle of price decline.

This sharp decline in silver prices is considered due to the easing of US-China tensions after the reassuring speech of US President Donald Trump, reducing the demand for safe haven in precious metals.

In addition, the positive business results of regional banks in the US also helped stabilize the stock market, putting downward pressure on gold and silver. The shortage of physical silver is also less severe, causing the silver fever to subside. In addition, technical indicators also indicate that the silver market is in overbought territory after a prolonged rally.

According to precious metals analyst Christopher Lewis, after a period of strong volatility, the market is in a natural correction process, needing more time to accumulate and move sideways to create a more solid foundation for the next increase.

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

When crowd sentiment rises and people start lining up to buy silver, it is often a sign that the market is approaching a short-term peak and a warning of a price bubble, says Christopher Lewis.

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

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

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