Silver price hits record high of 60.84 USD, WTI crude oil drops to 58.2 USD

Global silver prices surged 4.2% due to expectations of a Fed interest rate cut and tightening supply. Conversely, WTI and Brent crude oil prices weakened amid concerns about increasing global oversupply.

According to the Vietnam Commodity Exchange (MXV), the global commodity market witnessed a clear divergence in the trading session on December 9th. While silver prices set a new historical peak, the two key crude oil commodities weakened simultaneously under pressure from increased supply.

Silver prices soar to all-time highs

At the close of trading, silver prices attracted attention with a sharp 4.2% increase, reaching a record high of $60.84 per ounce. Since the beginning of the year, the precious metal has risen a total of 103%. This upward trend was driven by a combination of factors.

Expectations for the Fed to cut interest rates.

Investors expect the US Federal Reserve (Fed) to soon lower interest rates after economic data showed inflation cooling and the labor market slowing down. The latest JOLTS jobs report showed the number of job openings in October remained virtually unchanged at 7.7 million. This strengthens the likelihood that the Fed will cut interest rates by about 25 basis points at its next meeting, bringing rates to the 3.5-3.75% range. A lower interest rate environment increases the attractiveness of non-yielding assets such as silver.

Source: MXV

Tight supply and rising demand

The silver market has experienced a supply deficit for five consecutive years. Demand for silver is increasing, not only as a safe-haven asset but also as a crucial industrial metal in the green energy sector, particularly in solar panel production. Simultaneously, investment in physical silver continues to expand, with silver holdings at COMEX (US) warehouses increasing by 43% year-to-date, reaching nearly 14,200 tons. This concentration of physical silver in the US could cause localized shortages in other regions, further increasing pressure on prices.

Domestic silver prices hit a new record.

Due to its reliance on imports, domestic silver prices fluctuate in parallel with the global market. On the morning of December 10th, the price of 999 silver in Vietnam also climbed to its highest level ever, increasing by 1.3% compared to the previous session.

• In Hanoi : Silver 999 is traded in the range of 1,907 - 1,937 million VND/tael (buy - sell).
• In Ho Chi Minh City: Listed price is at 1,909 - 1,943 million VND/tael (buy - sell).

Crude oil prices continue to weaken.

The energy market opened the week in the red, with both crude oil commodities falling in price. Specifically, WTI crude oil fell by more than 1% to $58.2 per barrel, while Brent crude oil fell by 0.6%, closing at $62.1 per barrel.

Source: MXV

The biggest pressure comes from concerns that global supply will increase significantly faster than demand. Commodity trading firm Trafigura warns that from 2026, the amount of oil added to the market could far exceed consumption, causing a prolonged surplus. Supply is expanding sharply in the US, Brazil, and many OPEC+ countries.

Short-term signals also reinforce this forecast. Iraq has restored its full production of 460,000 barrels per day at the West Qurna-2 field, while Russia is ramping up exports. The OPEC+ decision not to cut production for the first quarter of 2026 also fuels market concerns that a large supply will continue to flow into the market, putting further pressure on prices.

Source: https://baolamdong.vn/gia-bac-lap-dinh-ky-luc-6084-usd-dau-tho-wti-giam-con-582-usd-409337.html