Silver prices recovered strongly after two consecutive declines.

VTV.vn - According to MXV, after two consecutive sessions of decline to the lowest level in nearly a month, silver prices in yesterday's session (October 28) suddenly reversed and recovered strongly.

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Specifically, the price of silver futures for December delivery has increased by 1.18% to 47.32 USD/ounce. According to MXV, the main driving force for this recovery comes from the weakening of the USD and the growing expectation that the US Federal Reserve (Fed) will continue to lower interest rates at the policy meeting taking place tomorrow.

The Dollar Index (DXY) fell 0.12% to 98.67, marking its second straight decline, as the yield on the 10-year US Treasury bond remained below 4% for more than a week. A weaker greenback makes silver and other precious metals, priced in dollars, more attractive to investors holding other currencies, thereby triggering technical buying in the market.

The probability of a further 25 basis point cut by the Fed has risen to 99.5%, according to the CME FedWatch tool. Recent data shows that the US labor market is cooling, with non -farm payrolls falling to their lowest level since the pandemic in May-August and the unemployment rate rising to 4.3% - a four-year high. Together with the Conference Board's October consumer confidence index continuing to decline, these signals reinforce the view that the Fed will maintain flexible monetary policy to support growth.

However, silver’s recovery was limited by weakening defensive demand. The global trade outlook improved after the US and China reached a preliminary framework agreement in Malaysia last weekend, reducing the risk of Washington imposing 100% import tariffs on Chinese goods. This positive development somewhat reduced the precious metal’s role as a haven.

Source: https://vtv.vn/gia-bac-phuc-hoi-manh-sau-hai-phien-giam-lien-tiep-100251029152506223.htm