In particular, the last two sessions of the week recorded strong pressure on many commodities after President Donald Trump announced new tariffs, causing the MXV-Index to fall nearly 3% compared to last week, down to 2,160 points.
Red covers the metal market
Closing the trading week from July 28 to August 1, the metal market was deep in red due to pressure from newly announced trade and monetary policies. At the end of the session on August 1, the price of silver fell to $36.93/ounce, a decrease of 3.74% for the week, and also the sharpest weekly decline since the end of March.
The USD has been on a strong uptrend since the beginning of the week due to cooling trade concerns and the US Federal Reserve's stance on keeping interest rates unchanged, helping the DXY index head towards its first monthly gain of the year. MXV believes that the main reason for the sharp decline in silver prices is the strengthening of the US dollar (USD). Silver has an inverse relationship with the USD, so when the USD increases, silver is often under pressure to weaken.
The dollar was on track for its first monthly gain in 2025 against a basket of major currencies as of August 1, supported by easing trade tensions and a resilient U.S. economy . The greenback hit its highest level since May 28 on July 31. The dollar has gained about 5% since the start of July, marking its biggest monthly gain since December 2024.
In addition, tariff barriers have also raised concerns about the risk of inflation returning to the US economy. According to data released on July 31, the US core personal consumption expenditure (PCE) price index in June increased by 2.8% compared to the same period last year, far exceeding the Fed's inflation target of 2%. Prolonged inflationary pressure is the reason why the Federal Open Market Committee (FOMC) decided to keep the high base interest rate in the range of 4.25-4.5% to control prices.
Higher interest rates make dollar-denominated commodities like silver less attractive to investors using other currencies. This could weaken demand and put downward pressure on silver prices this week. In fact, the US dollar index rose 1.53% last week to 99.14.
Crude oil has a volatile week
Contrary to the general trend, the announcement of the most anticipated agreement with the European Union (EU) by US President Donald Trump has supported the energy market to record positive signals. In particular, Brent oil price stopped at 69.67 USD/barrel, corresponding to a weekly increase of nearly 3%, WTI oil price also recorded an increase of more than 3%, reaching 67.3 USD/barrel.
In addition to the agreements reached with the EU, the positive trade negotiation situation between the US and China is also a major supporting factor for oil prices.
One of the major sticking points in trade negotiations between the world's two leading economies is the disagreement over crude oil imports from Russia to China.
Another factor that weighed on oil prices this week was the developments surrounding OPEC+’s decision on production. As most sources and forecasts had predicted, OPEC+ agreed to increase production by 547,000 barrels per day in September, completing the removal of all production cuts that had been in place since 2023, totaling 2.2 million barrels per day. The move is expected to continue to put pressure on oil prices today.
Source: https://baochinhphu.vn/thi-truong-hang-hoa-do-lua-truoc-thoi-diem-my-siet-thue-nhap-khau-102250804095830349.htm
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