Silver Prices Plummet Amidst US Dollar Appreciation and Rising Interest Rates

Silver prices took a hit on September 17, experiencing a simultaneous decline across various Vietnamese markets. As of 9:15 am, the price of Ancarat 2024 999 silver bars (1 tael) at Ancarat Gem Company listed between 2.138 - 2.202 million VND/tael, down by 22,000 VND/tael on the buying side and 23,000 VND/tael on the selling side compared to yesterday's morning prices.

The price of Ancarat 999 silver ingots (1kg) at Ancarat Gem Company was listed between 56,470 - 58,220 million VND/kg, down by 594,000 VND/kg on the buying side and 614,000 VND/kg on the selling side compared to yesterday's morning prices.

The decline in silver prices can be attributed to the appreciation of the US dollar and rising US Treasury bond yields. This development put pressure on silver as a metal that does not generate interest income following the US Federal Reserve's (Fed) decision to raise the federal fund interest rate by 0.25 percentage points.

The Fed stated that US economic activity continues to grow steadily, while domestic spending still maintains its strength and the labor market remains favorable. However, inflation is still high, and maintaining a high interest rate level is considered one of the tools to curb inflation and bring the price increase rate back to 2%.