Silver Prices Pulled Back and Consolidated, Downstream Buyers Waited and Purchased Cautiously, with Thin Trading [SMM Daily Review]

Precious metal prices were in the doldrums today, and the spot-futures price spread between TD and the most-traded SHFE silver contract had not narrowed significantly for the time being, while relatively large differences in spot market quotations still existed. In the Shanghai market, during the morning session, mainstream quotations from suppliers of standard silver ingots were at premiums of 80-100 yuan/kg against TD, or at a premium of 50 yuan/kg against the SHFE silver 2606 contract. However, due to weak downstream purchase interest, some suppliers lowered premiums and concluded a small number of deals. It was understood that, as the situation surrounding the U.S.-Iran conflict remained unclear, investment demand for precious metals fell sharply, and downstream buyers generally stayed on the sidelines and purchased cautiously. Some smelters sold cargoes self-picked up from production site at reduced premiums of 50 yuan/kg against TD, and with relatively ample spot cargoes circulating in the market, overall spot transactions were sluggish.