Bullish Sentiment on Silver Continues to Ferment, Spot Demand Premiums Fluctuate [SMM Analysis]

SMM, Oct 21: Last week, the silver market was strongly influenced by macro sentiment and capital flows. The reasons for the relatively active capital, besides the RRR cuts and active market funds, include geopolitical tensions in regions such as Korea and Israel-Palestine, which injected strong sentiment into the market's safe-haven demand, continuously and steadily boosting gold. The gold-silver ratio boosted silver prices; market expectations for the future US elections also supported the upward trend in silver prices. On Friday night, silver T+D reached a peak of 8,166 yuan per kilogram, while spot silver reached $33.751 per ounce.

[Economic Data]:
Bearish: The number of initial jobless claims in the US for the week ending October 12 was 241,000, lower than the previous value and the expected value of 260,000; the US retail sales month-on-month for September was 0.4%, lower than the previous value of 0.1% and the expected value of 0.3%.
Minor Impact: The European Central Bank deposit facility rate for October 17 was 3.25%, down 2.5% from the previous value and in line with the expected value.

[Spot Silver Ingots]:
Last week, the spot market for silver ingots showed a downward trend in premiums. At the beginning of the week, the market mostly quoted and traded national standard spot and warehouse warrants against the December contract. It is understood that this may be related to the significant deviation between the market's expected and actual values of the deferred fee direction, and changes in the spot-futures price spread also influenced market choices. Therefore, the market mostly quoted futures prices last week. As prices rose, the spot market volume was relatively ample, and the premiums for silver ingots began to gradually decline last week. The spot market for silver ingots was relatively ample, with supply exceeding demand, and many companies were selling. It was difficult for premiums to rise or remain stable. Market quotes were still at a premium, but transactions were significantly lower than the quoted prices.