Today, SMM’s 10:00 AM price for the Shanghai Gold Exchange Ag(T+D) was 14,561 yuan/kg, with the premium/discount range quoted from parity against TD to +10 yuan/kg, averaging +5 yuan/kg.
On the macro front, the US ISM Manufacturing PMI for July rose more than expected to 55.6, reflecting strong economic data. The US dollar index stopped falling, pressuring precious metals. Meanwhile, signs of easing US-Iran geopolitical tensions emerged, and expectations for the reopening of the Strait of Hormuz heated up, leading to a pullback in the geopolitical risk premium. On the futures market yesterday, silver rose 2.3% to $59.515/oz, with gold and silver consolidating amid mixed factors in the short term.
In the spot market, downstream demand remained sluggish this month, with limited new orders overall. The stronger silver price further weakened downstream purchase willingness. Market transactions mainly relied on support from banking institutions, with deals concentrated near parity, and trader offering activity was low. In Shanghai, morning quotes were mainly between parity against TD and +10 yuan/kg. In Shenzhen, some standard-grade cargoes were quoted around parity; although lower-priced material existed, it did not significantly disrupt spot trade. Today, the market quoted premiums and discounts against the most-traded SHFE 2610 contract at a discount of 60-50 yuan/kg.
Overall, with rising expectations of a Strait of Hormuz agreement, inflation concerns temporarily eased, and precious metals recovered slightly. In the spot market, the rise in silver prices further curbed demand, orders remained sluggish, and deals stayed thin.
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