Closing the trading week of September 4-11, the metal market price board was in red. After two consecutive weeks of increase, the prices of precious metals weakened; platinum led the group's decline with a decrease of 7.63% to 894.8 USD/ounce. This was also the sharpest weekly decline of platinum prices since November 2021. Silver prices also recorded the sharpest weekly decline in nearly 3 months when they fell 5.65% to 23.17 USD/ounce. Gold prices closed the week at 1,917.81 USD/ounce after falling 1.08%.
According to the Vietnam Commodity Exchange (MXV), the world raw material market has just experienced a week of volatile trading with differentiation in many important commodity groups. The MXV-Index closed the week down 0.4% to 2,288 points, with the total trading value of the exchange also falling to VND3,200 billion per session, reflecting the cautious sentiment of domestic investors in the face of market developments.
The metal group led the overall market trend with 9 out of 10 commodities recording sharp declines.
Closing the trading week of September 4-11, the metal market price board was in red. After two consecutive weeks of increase, the prices of precious metals weakened; platinum led the group's decline with a decrease of 7.63% to 894.8 USD/ounce. This was also the sharpest weekly decline in platinum prices since November 2021. Silver prices also recorded the sharpest weekly decline in nearly 3 months when they fell 5.65% to 23.17 USD/ounce. Gold prices closed the week at 1,917.81 USD/ounce after falling 1.08%.
MXV said that last week, money flowed out of the precious metals market as the stronger USD made investment costs more expensive.
In the US, data released last week showed the US services sector expanded for an eighth straight month, with jobless claims hitting their lowest level since February 2023, and the health of the world’s largest economy improving, helping to strengthen the US dollar.
In contrast, in the UK and Europe, according to S&P Global, Germany, the UK and the eurozone all saw their services purchasing managers’ indexes (PMIs) fall to their lowest levels this year, indicating weakness in the services sector, which is considered one of the main growth drivers of these economies.
The weak economic data weakened the pound and the euro, which helped boost the dollar, with the dollar index rising 0.82% to 105.09, marking an eight-week winning streak and its longest winning streak since 2014. The stronger dollar weighed on silver and platinum, which are more expensive to hold.
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In the base metal group, all commodities fell in price due to the double pressure from macro factors and less optimistic consumption. The prices of two key commodities, COMEX copper and iron ore, recorded decreases of 3.52% and 0.58%, respectively, closing the week at $3.71/pound and $113.33/ton.
In terms of macro factors, the strong increase in the USD reduces the attractiveness of goods, because this is the currency mainly used in international trade transactions.
In terms of consumption, the outlook for global base metal consumption is less bright amid slowing growth in major economies around the world. Demand remains weak in China, the world's largest metal consumer, as shown by negative import growth in August. Specifically, China's import growth rate in August fell 7.3% year-on-year, according to data from the National Bureau of Statistics of China (NBS).
Moreover, in the context of weak consumption, copper supply remains stable, which causes copper purchasing power to gradually decline. According to the latest data released by the world's two largest copper mining countries, in July, copper production in Chile and Peru increased by 1.7% and 17.7% respectively compared to the same period last year.
MXV believes that this week, the metal market will likely fluctuate strongly due to the impact of a series of important macroeconomic data.
US inflation data in August is one of the key information of the week, providing the basis for the US Federal Reserve's (FED) interest rate decision at its meeting on September 21. In the context of high prices of gasoline and some goods in the US, if inflation increases again, the FED may continue to raise interest rates once more this year. At that time, the increase in the USD price may put pressure on commodity groups in the energy and metal group, typically crude oil, silver, platinum, copper, etc.
In addition, the European Central Bank (ECB) will also hold an interest rate meeting on September 14. The high interest rate environment puts some pressure on the economies in the region, and the market will continue to be cautious about the ECB's policy decisions.
In addition, important economic data from China including industrial output, public investment, retail sales, etc. will be released on September 15, which will strongly influence the trend of metal prices. After some notable economic stimulus, if the August report data is more positive, base metal prices may recover.
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