Silver prices test previous highs, downstream buyers restock on dips with moderate trading volume [SMM Daily Review]

According to SMM, in the morning session today, gold prices were sold off after Trump postponed the imposition of tariffs on the EU, easing risk aversion. Silver prices continued to strengthen in the morning session after an overnight correction and tested the previous highs. In the morning session, the premiums and discounts for TD warrants of national standard silver ingots with spot cash payment in Shanghai were quoted at 3-5 yuan/kg. In Shanghai, large smelters quoted spot silver prices against TD at a premium of 5-6 yuan/kg. As month-end approached, some suppliers with depleted inventories suspended their quotes. A small amount of inventory was held back with quotes of a 5 yuan/kg premium against TD or a 2-0 yuan/kg discount against the SHFE silver 2506 contract, as suppliers waited to see how the market would develop. In south China, smelters quoted cargoes self-picked up from production site at a 7 yuan/kg discount against the SHFE silver 2506 contract. In east China, a smelter quoted cargoes self-picked up from production site at a 2 yuan/kg premium against TD. Despite the reduced availability of spot cargoes at month-end, some downstream enterprises purchased inventory at low prices, and market transactions were moderate.

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