Today, SMM's 10:00 a.m. price for the SGE Ag (T+D) was 16,337 yuan/kg, with premiums quoted at parity to +10 yuan/kg against TD, and a weighted average price of 3.95 yuan/kg.
On the macro front, the US dollar index fell for a third consecutive trading day to 98.78. The weaker dollar directly reduced the holding cost of dollar-denominated precious metals, providing positive momentum for gold prices. Meanwhile, although the 10-year US Treasury yield hit a near three-year high, Treasury prices continued to decline, suggesting that the appeal of dollar assets is being questioned in the short term, which is bullish for precious metals in the near term. According to World Gold Council data, global gold ETFs attracted $18 billion in August, the second-largest monthly inflow on record, constituting a medium and long-term structural bullish factor.
In the spot market, higher silver prices dampened some downstream consumption, but the spot-futures price spread remained firm. Traders' morning quotes were concentrated at TD +5 yuan/kg, while downstream buyers mostly preferred to negotiate prices, with actual transaction prices skewed toward the lower end. Morning quotes in Shanghai were concentrated at a discount of 40-35 yuan/kg against the most-traded SHFE 2610 contract. Smelter EXW offers were on the low side, and low-priced cargoes meeting national standards were present in the market. Overall trading sentiment weakened compared with yesterday. Today's premiums for the most-traded SHFE 2610 contract were quoted at a discount of 45 to 35 yuan/kg.
Overall, the rise in long-term US Treasury yields drove up the risk premium on US debt, which is favorable for holding precious metals. In the spot market, offers remained firm today, but the rise in silver prices suppressed demand, with transactions skewed toward parity.
