On the global market, silver prices have seen a significant rise, reaching their highest level in a month. As of January 16, 2025, spot silver prices stood at $30.88/ounce, nearly a 4% increase compared to previous trading sessions. In Vietnam, silver prices also surged, ranging from VND 779,000 to VND 784,000/ounce, marking a rise of VND 23,000/ounce compared to January 15. This price hike is largely driven by positive macroeconomic signals and expectations of monetary easing policies from the U.S. Federal Reserve (Fed).
Global Silver Price Surge
On the international market, spot silver prices increased by 0.91%, rising from $29.97/ounce on January 15 to $30.88/ounce on January 16. Notably, in recent trading sessions, silver prices soared by nearly 4%, peaking at $31.5/once—the highest level in a month. This is a positive indicator for the precious metals market amidst significant economic and political influences.
In Vietnam, silver buying and selling prices ranged from VND 779,000 to VND 784,000/ounce, reflecting a one-day increase of VND 23,000/ounce. This upward movement is fueled by international market dynamics and growing domestic demand amid a weakening U.S. dollar.
Key Drivers Behind the Silver Price Rally
Positive Macroeconomic Signals
According to data from the U.S. Bureau of Labor Statistics, the core Consumer Price Index (CPI)—excluding volatile components like food and energy—rose by 3.2% in December 2024 compared to the previous year. This figure fell short of the projected 3.3%, signaling a gradual decline in inflationary pressures.
This development has bolstered expectations that the Fed will continue to lower interest rates, with a total of 40 basis points anticipated by the end of the year.
A lower-than-expected core CPI is a positive signal for precious metals like silver.
When the Fed reduces interest rates, the U.S. dollar tends to weaken, thereby increasing the value of dollar-denominated assets such as silver.
Growing Investment Demand for Silver
Amidst ongoing global economic uncertainty, silver remains a safe-haven investment for many. The sharp increase in silver prices reflects a shift of capital into secure assets, especially as other financial markets remain volatile.
Impact of the Domestic Market
In Vietnam, the surge in domestic silver prices is driven by global market trends and heightened local demand for precious metals. Consumers are seeking to preserve value in the face of unresolved global inflationary challenges.
The significant rise in silver prices on January 16, 2025, is the result of macroeconomic factors and financial market volatility. Positive signals from easing inflationary pressures and expectations of Fed rate cuts have boosted investment demand for precious metals, propelling silver prices to their highest level in a month.
Looking ahead, silver prices are expected to remain high, particularly if the Fed implements anticipated monetary easing policies. However, the market remains susceptible to risks from global economic and political fluctuations, requiring investors to stay vigilant and make informed decisions.
