Precious metal prices plummet.

Báo Công thương•01/11/2024

According to the Vietnam Commodity Exchange (MXV), the global raw materials market showed mixed performance on the last trading day of October.

However, selling pressure remained dominant, dragging the MXV-Index down nearly 1.8% to 2,130 points. Industrial materials and metals led the overall market decline.

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

MXV-Index

Precious metal prices fell to their lowest level in two weeks.

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

Metal price list

On October 31, the US Department of Commerce announced that the Personal Consumption Expenditures (PCE) index for September rose 2.1% year-on-year. This rate is lower than the 2.3% increase in August and closer to the Federal Reserve's (FED) 2% target, further reinforcing the likelihood of a Fed interest rate cut next week. However, excluding the volatile energy and food prices, the US PCE increased 2.7% year-on-year and 0.3% the previous month. The market is still expecting the Fed to further cut interest rates at its policy meeting on November 6-7, following a 50 basis point reduction in September.

Furthermore, the easing of recession fears in the US has weakened the safe-haven role of precious metals. Recent US data has shown that the world's largest economy remains stable, with a robust labor market and increased consumer, business, and government spending. US GDP in the third quarter recorded a steady growth of 2.8%.

For base metals, prices of commodities in the group recorded relatively low volatility, mostly changing by less than 1%. Iron ore prices, in particular, rose 0.15% to $103.89 per ton, marking the third consecutive day of gains.

Yesterday, iron ore prices benefited from positive economic data released by China, bolstering consumption prospects. Specifically, according to the National Bureau of Statistics, China's manufacturing activity rebounded after five consecutive months of contraction, as evidenced by the manufacturing Purchasing Managers' Index (PMI) reaching 50.1 points in October. This figure was slightly higher than the forecast of 50 points and up from 49.8 points in September.

Coffee prices reverse course and weaken.

According to MXV, selling pressure dominated the industrial raw materials market at the close of yesterday's trading session. For coffee, the price of Arabica coffee for December delivery fell 1.48% to $5,421 per ton, and the price of Robusta coffee for January delivery fell 1.89% to $4,369 per ton.

Industrial raw material price list

In Vietnam, the rains from Typhoon Tra Mi did not significantly affect coffee crops as the harvest has only reached about 5% of the target. Traders predict that trading activity will pick up from the end of November when supply is replenished.

Coffee prices are under pressure from exchange rates as the Brazilian Real weakens, keeping the USD/BRL exchange rate at its highest level in 12 weeks, even though the Dollar Index fell by 0.31%. This raises concerns that Brazil will increase coffee exports in the coming period, leading to an oversupply in the market.

On the domestic market on November 1st, the price of bulk green coffee beans from the Central Highlands and Southeast regions decreased to 107,800 - 108,200 VND/kg. Compared to the beginning of the year, the price has increased by more than 40,000 VND/kg from 67,500 - 68,400 VND/kg. The current price is almost double that of the same period last year, when it only fluctuated around 60,200 - 61,000 VND/kg.

Experts predict that coffee trading will become more active from the end of November as supply is supplemented by Vietnam's new harvest. However, the market still needs to closely monitor weather developments in major production regions as well as exchange rate fluctuations in the coming period.

Prices of some other goods