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Global commodity markets experienced significant volatility during the October 21 trading session, as selling pressure dominated, driving the MXV-Index down by 0.8% to 2,255 points. According to the Vietnam Commodity Exchange (MXV), the metals sector emerged as the focal point for domestic and international investors, leading the market’s overall decline.
Silver prices plummeted by over 7%—the sharpest drop since early October—falling below the psychological threshold of $50/ounce due to widespread profit-taking. This occurred amid a strengthening U.S. dollar and weakening industrial demand. The December silver futures contract closed at $47.7/ounce.
Analysts attribute this correction to the inevitable pullback following a prolonged rally, particularly as new data reveals slowing industrial demand. In China, which accounts for approximately 40% of global industrial silver demand, third-quarter GDP growth slowed to 4.8%, down from 5.2% in the previous quarter. While September industrial output rose 6.5% year-on-year, the economy is increasingly reliant on exports, threatening silver demand in electronics, solar panels, and green energy sectors.
Simultaneously, the U.S. Dollar Index (DXY) climbed 0.35% to 98.93 points—its third consecutive session of gains—making precious metals less attractive to investors holding other currencies.
Despite the short-term correction, silver’s long-term outlook remains positive, supported by a robust supply-demand dynamic. The market is projected to enter its fifth consecutive year of deficit, driven by sustained high demand from renewable energy and electric vehicle sectors.
Additionally, geopolitical risks and the potential for the U.S. Federal Reserve to ease monetary policy are expected to reignite safe-haven buying. Investors are closely monitoring the U.S. Consumer Price Index (CPI) data, scheduled for release on October 24 (Vietnam time), as a critical factor shaping interest rate expectations amid the ongoing U.S. government shutdown.
In Vietnam, 999 silver prices on October 22 also dropped by over 4%, falling below the 1.7 million VND/tael range maintained for the past two weeks. Prices in Hanoi now range between 1,626,000 – 1,656,000 VND/tael (buy-sell), while in Ho Chi Minh City, they fluctuate between 1,628,000 – 1,662,000 VND/tael. As Vietnam relies almost entirely on imports, domestic silver prices typically mirror global market movements.
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