Silver's technical rebound continues, spot premiums stable and trading weak [SMM Daily Review]

Today, SMM's 10:00 a.m. fixing quote for SGE Ag (T+D) was 16,576 yuan/kg, with a premium range quoted at TD parity to +20 yuan/kg, averaging +10 yuan/kg.

Macro, precious metals are in a technical rebound phase. The US-Iran agreement officially took effect, the Strait of Hormuz will reopen on Friday, crude oil prices fell sharply, market focus shifted from geopolitical risks to US Fed policy expectations, and US bond yields stayed high. Also needing attention today is the Bank of Japan's interest rate decision.

Spot market, overall offer price spreads remained wide today. In mid- to late June, the consumer market was generally weak, as the continuous rise in silver prices curbed some demand. Morning quotes in Shanghai were mainly between TD parity and +20 yuan/kg, but actual transactions still leaned toward the lower end, and market trading volume was weak. Low-priced spot cargoes in other regions were mostly cleared out, and smelters' quotes mostly stayed around parity to +10 yuan/kg.

Overall, precious metals rose for a third straight day, indicating that safe-haven funds are still flowing in. This week, geopolitics and US Fed policy continued to wrestle, constraining the direction of precious metals. Spot market premiums have been relatively stable recently, but actual transactions are weak. Going forward, attention should be paid to the execution of new demand orders.