Today, SMM’s 10:00 a.m. price for the Shanghai Gold Exchange Ag(T+D) is 15,370 yuan/kg, with premiums quoted at parity to TD +10 yuan/kg and the average premium at +5 yuan/kg.
On the macro front, US-Iran tensions eased temporarily, and precious metals prices rebounded slightly. Short-term geopolitical risks and economic data together are dictating precious metals’ direction, while the market awaits the first appearance by FOMC’s Warsh for signal guidance.
In the spot market, this week’s continuous decline in silver prices has impacted downstream purchasing sentiment. The “rush to buy amid continuous price rise and hold back amid price downturn” sentiment has suppressed some transactions, but overall industrial demand recovered this month. Today, suppliers’ quotes were concentrated at TD +10 yuan/kg. In the morning session in Shanghai, quotes mainly ranged from parity to TD +10 yuan/kg, with transactions mostly done at the lower end. As silver prices rebound today and delivery approaches, transaction prices are expected to gradually shift to premiums. Low-priced supply in other regions has been largely cleared, and market quotes now hover mostly around parity.
Overall, the macro situation remains volatile, and the market is heavily disturbed by news flow. Spot market consumption has improved somewhat, with transactions clustered mainly around parity. Downstream purchase willingness still needs close attention in the near term.
