Silver Moved Sideways with Narrowing Discount, Awaiting Non-Farm Payrolls Data for Guidance [SMM Daily Review]

Today, SMM's 10:00 AM pricing for SGE Ag(T+D) was 17,522 yuan/kg, with premiums ranging from TD-10 to 0 yuan/kg, averaging -5 yuan/kg.

On the macro front, precious metals faced mixed signals. Weakening US employment data and a pullback in the US dollar provided support for precious metals, while Middle East peace talk expectations suppressed safe-haven demand. Tonight's US May non-farm payrolls data will be a key variable for short-term price movements.

Spot market, June silver demand was expected to recover strongly overall. Today the market maintained a narrow discount pattern; approaching the weekend, the lower end of quotes narrowed compared to yesterday. In Shanghai, early morning quotes were mainly concentrated between TD-10 yuan/kg and a slight premium, with overall offers recovering compared to yesterday and most offers leaning toward premiums, while transactions were mainly concentrated around TD-10 yuan/kg. In other regions, low-priced cargoes were largely cleared, and discount margins narrowed significantly.

Overall, the macro landscape remained highly uncertain, market sentiment swung back and forth, and silver was under pressure in the short term. Going forward, attention should be focused on geopolitical conflicts and economic data guidance. Spot market, as transactions followed through, discount margins narrowed notably MoM, and quotes gradually stabilized at a slight discount.