Precious metal prices plummet

According to the Vietnam Commodity Exchange (MXV), the world raw material market was divided on the last trading day of October.

However, selling pressure still prevailed, pulling the MXV-Index down nearly 1.8% to 2,130 points. In which, industrial materials and metals led the weakening trend of the whole market.

Thị trường hàng hóa hôm nay ngày 1/11: Giá kim loại quý lao dốc

MXV-Index

Precious metal prices fall to two-week low

At the close of yesterday's trading session (October 31), the metal market had mixed developments. For precious metals, silver prices fell 3.75% to $32.79/ounce, a two-week low. This was also the session that recorded the largest daily drop in silver prices in the past three weeks. Platinum prices also lost the $1,000/ounce mark after falling more than 2%, closing at $999.6/ounce, a two-week low.

Metal price list

On October 31, the US Department of Commerce announced that the Personal Expenditures Price Index (PCE) in September increased by 2.1% compared to the same period last year. This rate is lower than the 2.3% in August and is closer to the 2% target set by the US Federal Reserve (FED), strengthening the possibility that the FED will lower interest rates next week. However, excluding volatile energy and food, the US PCE increased by 2.7% compared to the same period last year and 0.3% last month. The market is still expecting the FED to continue to lower interest rates at the policy meeting on November 6-7 after reducing 50 basis points in September.

In addition, the easing of fears of a US recession has also weakened the precious metal’s role as a safe haven. Recent US data has shown that the world’s largest economy is still growing steadily, the labor market is strong, and consumer, business and government spending are all increasing. The US GDP in the third quarter recorded a steady growth of 2.8%.

For base metals, prices of items in the group all recorded quite low fluctuations, most of them changing by less than 1%. Of which, iron ore prices increased by 0.15% to 103.89 USD/ton, marking the third consecutive increase.

Iron ore prices benefited from positive economic data from China yesterday, bolstering the outlook for consumption. China’s manufacturing activity expanded again after five consecutive months of contraction, as the country’s National Bureau of Statistics said the manufacturing purchasing managers’ index (PMI) came in at 50.1 in October, slightly above the forecast of 50 and up from 49.8 in September.

Coffee prices turn to weaken

According to MXV, at the end of yesterday's trading day, selling pressure dominated the industrial raw material market. For the two coffee products, the price of Arabica coffee for December delivery decreased by 1.48% to 5,421 USD/ton and the price of Robusta coffee for January delivery decreased by 1.89% to 4,369 USD/ton.

Industrial raw material price list

In Vietnam, the rains from Typhoon Tra Mi have not had much impact on coffee crops as the harvest has only reached about 5% of output. Traders expect trading to pick up from late November when supplies are replenished.

Coffee prices were pressured by the exchange rate as the weakening Brazilian Real kept the USD/BRL exchange rate at a 12-week high, despite the Dollar Index falling 0.31%. This raised concerns that Brazil would boost coffee exports in the coming time, causing oversupply in the market.

On the domestic market on November 1, the price of green coffee beans in the Central Highlands and Southeast regions dropped to VND107,800 - 108,200/kg. Compared to the beginning of the year, the price has increased by more than VND40,000/kg from VND67,500 - 68,400/kg. The current price is nearly double that of the same period last year when it only fluctuated around VND60,200 - 61,000/kg.

Experts predict that coffee trading will be more active from the end of November when supplies are supplemented from Vietnam's new harvest. However, the market still needs to closely monitor weather developments in major production areas as well as exchange rate fluctuations in the coming time.

Prices of some other goods