The price trend of spot silver is the index price of the global silver market, and many large institutions, fund companies and professional investors will participate in it. Ordinary investors, as a relatively disadvantaged group, of course want to know the secret behind the price trend of this product, so that they can actively deal with it in the process of trading in the future.
However, just like spot gold, the price trend of spot silver is completely regulated by the market itself, and it is not subject to any human manipulation, not to mention consortiums and hot money, even a country cannot control such a huge market. But investors should also pay attention to it, just like the price of gold, the price trend is easily affected by the strength of the US dollar. Generally speaking, when the US dollar strengthens, the price of gold and silver tends to fall; and when the US dollar weakens, the price of gold and silver tends to go rise. On the one hand, this is because the price of precious metals in the international market is denominated in U.S. dollars, and the depreciation of the U.S. dollar will increase the price of gold and silver relative to the ground. On the other hand, it is also related to the opportunity cost of holding gold and silver.
From the perspective of the fundamental logic that affects the price of gold and silver, its price trend depends on its opportunity cost, which is mainly affected by the nominal interest rate in the United States and inflation. At present, the Federal Reserve is stepping up its efforts to cut interest rates, and the yield of the 10-year Treasury bond in the United States has fallen sharply. Gold and silver prices, but inflation is affected by the sharp drop in crude oil prices, and there is a downward expectation, which is negative for gold and silver. Under the combined effect of two factors, the price trend of gold and silver in the future market depends on the US dollar yield and The relative degree of change in the inflation data - if the Fed continues to cut interest rates, the spot silver price will have an upward momentum.