Today, SMM’s 10:00 am quote for SGE Ag(T+D) was 14,597 yuan/kg, with premium/discount quotes ranging from TD-5 to +5 yuan/kg, and an average of 0 yuan/kg.
On the macro front, Trump ordered a halt to airstrikes on Iran, and Iran also suspended retaliatory strikes, easing geopolitical tensions temporarily. WTI crude oil fell more than 6% during the session to $83.1/bbl, closing down 2.05% at $90.89; Brent closed down 1.85% at $93.16. Inflation and rate hike expectations eased, giving precious metals room to rebound.
In the spot market, premium/discount deals held steady around parity. The spot-futures price spread fluctuated widely today; traders showed weak willingness to sell, and demand remained sluggish, but there was some restocking for essential needs near the month-end. Morning quotes in Shanghai were mainly between TD parity and +10 yuan/kg, with suppliers offering at relatively high levels. In Shenzhen, some standard-grade supplies were concentrated around TD-5 yuan/kg to parity; although low-priced cargoes were available, they did not significantly disrupt spot trading, and downstream transaction negotiations mostly focused on the low end. Today, the market’s premium/discount quote against the most-traded SHFE 2610 contract was a discount of 65-50 yuan/kg.
Overall, expectations of a US-Iran ceasefire drove gold and silver prices to jump, and the market awaited the Fed’s interest rate decision guidance. In the spot market, the spot-futures price spread fluctuated more sharply, with the supply-demand both weak pattern persisting, and deals closing near parity.
