US Fed Meeting Minutes Released: Silver Price Volatility This Week [SMM Analysis]

This week, the US Fed meeting minutes were released, explaining the unexpected 50 basis point interest rate cut in September. This decision was based on the Fed's 2% inflation target, combined with labor and employment data. The statements in the meeting suggest 1-2 more interest rate cuts after this year, with relatively moderate reductions. The market adjusted prices accordingly, leading to price fluctuations.

[Economic Data]:

Positive: The number of initial jobless claims in the US for the week ending October 5 was 258,000, higher than the previous 225,000 and the expected 230,000.

Negative: The US EIA crude oil inventory for the week ending October 4 was 5.81 million barrels, higher than the previous 3.889 million barrels and the expected 2.048 million barrels; the seasonally adjusted CPI annual rate at the end of September was 2.4%, lower than the previous 2.5%, indicating suppressed inflation.

[Spot Market]:

Silver: This week, the supply in the spot silver market gradually eased, with a downward trend in spot premiums and discounts. During the National Day holiday, smelter production departments mostly did not take a break, opting for rotational shifts, leading to the production of silver ingots and subsequent pickup by traders. Meanwhile, the market was also releasing goods. Suppliers, learning from last year's booming market and the shortage of silver ingots, made preparations in advance, resulting in relatively ample supply after the holiday this year.

Downstream: Sectors like silver nitrate, silver powder, and silver paste resumed normal operations after the holiday, with stable production and procurement. Other industries also returned to normal production demand after the holiday.