Silver Price Under Pressure, Spot Premiums Struggle to Widen [SMM Daily Review]

Today, SMM’s 10:00 AM quote for the Shanghai Gold Exchange Ag(T+D) was 15,474 yuan/kg, with a premium range quoted from TD parity to +10 yuan/kg, and an average of +5 yuan/kg.

On the macro front, fluctuating expectations for US-Iran peace talks and non-farm payrolls data reinforcing rate hike expectations drove US Treasury yields higher, weighing on precious metals. Silver tumbled 4.1% in a single day yesterday, and the short-term trend is bearish. Future moves will be guided by tonight’s US CPI data.

Spot market side, the decline in silver prices stimulated downstream purchasing demand, and coupled with a gradual recovery in industrial demand, downstream inquiries were relatively active this week. Today, supplier quotes were concentrated at TD+5 yuan/kg. In the Shanghai region, morning quotes were mainly centered between TD parity and +10 yuan/kg. Suppliers had strong expectations to push premiums higher, but the downstream was affected by the “rush to buy amid continuous price rise and hold back amid price downturn” sentiment, limiting transactions at premium levels. Low-priced cargo in other regions was largely cleared, with market quotes mostly hovering near parity. Notably, banks have been selling at around parity prices recently, making it difficult for market quotes to shift quickly to premiums in the short term.

Overall, macro uncertainties remain significant, with geopolitical and US economic factors trading off against each other, keeping precious metals under pressure in the short term. Although spot market consumption has improved somewhat, whether quotes can hold steady above parity still hinges on further momentum from actual transactions.