Today, SMM’s 10:00 a.m. price for Ag (T+D) on the gold exchange was 15,421 yuan/kg, with the premium/discount range quoted from TD-10 yuan/kg to parity, and the weighted average price at -6.1 yuan/kg.
On the macro front, after Warsh’s hawkish speech at Jackson Hole, Barr again sent hawkish signals. Combined with the 10-year US Treasury yield rising 4.7 bp to 4.803% and the 2-year yield rising 5.6 bp to 4.410%, the US dollar index strengthened 0.24% to 99.65. Both interest rates and the dollar weighed on gold prices. In addition, Indian Prime Minister Modi called on the public for the second time this year to “avoid buying gold unless necessary,” and buying sentiment in the world’s largest physical demand country was officially suppressed. The US-Iran geopolitical conflict continued to escalate, and precious metals remained under downward pressure recently.
In the spot market, the decline in silver prices spurred some buying interest. Combined with a narrowing spot-futures price spread, suppliers showed stronger willingness to quote and sell. Today, quotes for standard silver ingots were concentrated near TD-5 yuan/kg. Some large plants quoted higher, but actual transactions leaned toward discounts, with downstream buyers mostly negotiating prices. Transactions improved from yesterday, with supply relatively strong and demand recovering slightly. Morning quotes in Shanghai were mainly concentrated from a discount of 10 yuan/kg to parity, with trader and smelter quotes basically flat. Today, the market’s premium/discount quote against the most-traded SHFE 2610 contract was a discount of 45 to 35 yuan/kg.
Overall, precious metals remained under downward pressure in the short term, weighed by rising US Treasury yields and warming rate hike expectations. In the spot market, transactions recovered slightly today, and market quotes remained at small discounts.
