Today, SMM’s 10:00 price assessment for Shanghai Gold Exchange Ag(T+D) was 15,938 yuan/kg, with premium/discount quotes ranging from TD-10 to +5 yuan/kg and an average of -2.5 yuan/kg.
On the macro front, the US July unadjusted CPI rose 3.4% YoY, matching expectations and down from 3.5% previously. The July CPI data further confirmed the ongoing slowdown in inflation. Market bets on a September Fed rate hike were slightly scaled back, and precious metals futures saw a slight correction, but momentum for a further breakout remained insufficient.
In the spot market, the spot-futures price spread narrowed somewhat today, but consumption remained sluggish; downstream buyers mostly preferred to negotiate prices, and suppliers’ offers gradually moved toward a small discount. Early-session quotes in Shanghai were mainly at TD-10 to +5 yuan/kg. Reduced purchases by banking institutions weakened floor support; only some acceptance-related rigid demand was traded, leaving overall transactions biased toward discounts. In Shenzhen, some national-standard cargoes were concentrated around slight discounts to parity. The market premium/discount quote against the most-traded SHFE 2610 contract was a discount of 65 to 55 yuan/kg.
Overall, cooling inflation expectations provided some upside room for precious metals. In the spot market, transaction prices fell further today; the weak demand trend persisted, and high silver prices continued to suppress downstream purchase willingness.
