Today, SMM's 10:00 quotation for Ag (T+D) on the Shanghai Gold Exchange was 16,660 yuan/kg, with the premium/discount range quoted at TD-10 to +5 yuan/kg and a weighted average price of -5.83 yuan/kg.
On the macro front, the US Treasury expanded the scale of long-term Treasury buybacks, pushing long-end US Treasury yields to pull back significantly. The US dollar index weakened, providing rebound support for precious metals. However, US Treasury yields rose again yesterday, with the 10-year yield climbing to 4.705%, a recent high, and the 30-year yield erasing the decline caused by the Treasury buyback. Global long-end yields moved up in tandem, and rising real yields continued to pressure non-yielding assets. Hawkish signals from the US Fed persisted, with Musallem stating that current rate hikes could help avoid more aggressive actions in the future. Precious metals, caught in the interplay of Treasury buybacks, inflationary pressures, and US Fed rate hikes, are expected to maintain wild swings in the short term.
On the spot market, the spot-futures price spread continued to narrow today, and traders had a strong selling sentiment. However, silver prices rose for two consecutive days, further suppressing downstream demand, with insufficient follow-up trading and weak consumption. In the Shanghai region, morning quotes were mainly concentrated in the TD-10 to +10 yuan/kg range. Some bank institutions made purchases to provide support, and trading was concentrated in the TD-5 yuan/kg to parity range. Today, premiums/discounts for the most-traded SHFE 2610 contract were quoted at a discount of 65 to 50 yuan/kg.
Overall, short-term precious metals have held up well under the multi-factor support of a weaker US dollar, falling US Treasury yields, fiscal concerns, and geopolitical risks. On the spot market, high silver prices continued to suppress spot order demand, and trading was generally sluggish.
![Platinum continues to rise sharply, with heavy wait-and-see sentiment in the spot market and spot discounts widening. [SMM Daily Review]](https://imgqn.smm.cn/usercenter/ipCjz20251217171734.jpeg)
