Silver Price Awaits Guidance from US Fed Decision, Spot Silver Transactions Remain at Parity [SMM Daily Review]

Today, SMM's quote for the SGE Ag (T+D) contract at 10:00 was 14,048 yuan/kg, with the premium/discount range quoted at TD-5 to +5 yuan/kg, averaging 0 yuan/kg.

On the macro front, the market turned cautious ahead of the Fed's rate decision early Thursday morning, limiting the upside room for silver prices. U.S.-Iran tensions have fluctuated, sending oil prices higher this morning and driving volatility in inflation expectations. Precious metals lack clear signals in the short term, and prices moved sideways.

In the spot market, the weak supply-demand balance at month-end persisted. Suppliers gradually held back from selling, with some offers leaning towards premiums, while downstream buyers sought to negotiate, preferring slight discounts. However, transactions were largely kept near parity today. Early morning quotes in Shanghai were mainly from TD parity to +10 yuan/kg, with deals at the lower end. Affected by seasonal factors, silver ingot production pulled back slightly this month, and both domestic and external demand were sluggish. Overall offers remained firm but transactions were limited. In Shenzhen, some nationally standardized sources were concentrated around TD-5 yuan/kg to parity. Although low-priced cargoes existed, they did not significantly disrupt spot trade. Today, the premium/discount quote for the most-traded SHFE 2610 contract was a discount of 60-50 yuan/kg.

Overall, market focus was on the Fed's July policy meeting and subsequent signals. In the spot market, the weak supply-demand balance at month-end persisted, with transactions near parity.