Economic and market news on March 18, 2024: Forecast of a difficult week for the gold market

Economists discuss steps to bring gold back to the market; the era of gold rings and the story of managing the gold market.

Gold price today

World gold prices showed an upward trend early this morning (March 18), with spot gold rising $2.3 compared to last week's closing price to $2,158 per ounce.

Last week, the gold market came under pressure after receiving a hotter-than-expected inflation report. The yellow metal ended the week down 0.8%, marking its first weekly decline after four weeks of gains.

Điểm tin kinh tế - thị trường ngày 18/3/2024: Dự báo một tuần khó khăn với thị trường vàng

A challenging week is predicted for the gold market.

Domestically, at 8:00 AM this morning, the price of SJC branded gold bars was listed at 79.60 million VND/ounce for buying and 81.45 million VND/ounce for selling, unchanged compared to yesterday afternoon.

Gold prices for gold rings continue to plummet. At Bao Tin Minh Chau, the price of gold rings at 8 AM this morning was listed at 68.13 million VND/ounce for buying and 69.38 million VND/ounce for selling.

Experts believe this week will be relatively challenging for the gold market as the Fed discusses its future policy direction and releases updated economic forecasts.

Fuel prices are rising.

According to Dailyfx, at 5:30 AM on March 18th (Vietnam time), Brent and WTI oil prices rose slightly. On the world market, WTI oil reached $80.61 per barrel, an increase of $3.18 per barrel. Meanwhile, Brent oil reached $84.91 per barrel, an increase of $3.28 per barrel at 6:25 AM on March 18th (Vietnam time).

The OPEC+ alliance, comprising OPEC and its allied oil-producing nations, has extended production cuts until the end of the second quarter of 2024. At the same time, Ukraine's attack on a series of major Russian refineries could significantly reduce Russia's oil production capacity.

Domestically, today's fuel prices are as follows: E5 RON 92 gasoline not exceeding 22,490 VND/liter; RON 95-III gasoline not exceeding 23,543 VND/liter; diesel fuel not exceeding 20,549 VND/liter; kerosene not exceeding 20,706 VND/liter; and fuel oil not exceeding 16,432 VND/kg.

7.5 trillion VND in corporate bonds issued in the first two months of the year.

In the first two months of the year, there were 13 corporate bond issuances with a total value of nearly 7,500 billion VND, 8.2 times higher than the same period last year. This is a method many businesses are choosing for medium and long-term loans to minimize costs while simultaneously increasing production scale and expanding markets in the current context.

Of the nearly 7.5 trillion VND, the highest proportion was in the real estate and construction sector, accounting for over 73%, followed by the securities and banking sector in second place with over 16%. The remainder was trade and services.

Over 87% of bond buyers are institutional investors and foreign investors.

Shipping costs have increased.

Tensions in the Red Sea have negatively impacted the import and export activities of many countries, and Vietnam is not immune to these effects. Some immediate negative impacts include increased freight costs, a shortage of empty containers, longer transit times, and reduced ability to fulfill import and export orders.

Shipping rates have now increased by 50-70% as tensions in the Red Sea escalate, causing concern among businesses and prompting calls for sanctions against shipping companies that take advantage of the situation to raise fees.

Freight rates from Vietnam to Europe have increased, with prices to Hamburg (Germany) nearly tripling between December 2023 and January 2024. A cargo ship from Singapore to Rotterdam, which typically takes 26 days, is now 10 days slower due to a rerouting around the Cape of Good Hope in Africa.

Each 40ft container of timber imported from Europe now costs businesses over $500 due to the impact of tensions in the Red Sea.

The real estate market, which has just begun to recover, is already facing concerns about price increases.

Although there is a recovery in the market, with businesses launching products to keep pace with the new cycle, the worrying aspect is that the selling prices of both new and used products in the secondary market are starting to adjust upwards.

For example, at the Eaton Park Project (Thu Duc City), although the official price has not yet been announced, according to real estate agencies, the selling price will be around 6,000 - 7,000 USD/m2 (equivalent to 147.6 - 172.2 million VND/m2).

For example, a luxury apartment project in the Van Phuc Urban Area (also in Thu Duc City), according to the developer's representative, has a selling price of no less than 100 million VND/m2. Similarly, a luxury apartment project in The Global City urban area by Masterise Homes also has a selling price of 100 million VND/m2 or more, while townhouses in this project were previously sold on the market at a price of 400 million VND/m2.

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