This week, platinum and palladium retreated after a rapid rise and then consolidated at highs. Weaker nonfarm payrolls and a mild pullback in CPI fueled a cooling of rate-hike expectations. However, the US and Iran became embroiled in a compensation dispute and the strait remained closed. Together with technical resistance and profit-taking, prices came under pressure and pulled back. Spot market quotes were marked by relative involution, and consumption remained subdued.

[SMM Silver Weekly Review: Silver Retreats After Rapid Rise This Week, Up 3.29% on the Week; Futures Stay Firm While Spot Discounts Widen]Silver prices retreated after a rapid rise this week, gaining 3.29% on the week. Negative nonfarm payrolls and cooling rate-hike expectations pushed prices to a mid-week high, but the market turned cautious after the CPI release. Spot premiums gradually shifted to discounts, showing a divergence pattern in which futures were strong while spot was weak. Inventories saw a 74 mt buildup, and ETF holdings edged up. In the short term, prices are likely to consolidate; over the medium and long term, watch for upside opportunities after the rate hike path and geopolitical situation become clearer.

Precious metals fluctuated at highs overall this week, with spot gold rallying from $4,240 to above $4,440 and hitting a two-month high. The core drivers were a sharp downside surprise in July nonfarm payrolls and a mild pullback in CPI; expectations for a US Fed interest rate hike in September cooled significantly, the US dollar and US Treasury yields both pulled back, and central bank gold purchases accelerated. Watch for a rebound in oil prices, supply pressure in US Treasuries, and a short-term technical pullback.