8834! SHFE silver hits a new high since listing! Precious metals sector rises by over 3%, Hunan Silver hits daily limit [SMM News]

SMM June 6 News:

Recently, the US economic data released for May has shown poor performance. The number of initial jobless claims in the US has risen to its highest level in seven months, and the US ADP employment data has declined significantly MoM. The ISM non-manufacturing index has fallen below the 50 mark, exceeding expectations, intensifying market concerns about a slowdown in US economic growth, which in turn has fueled expectations for US Fed interest rate cuts. The European Central Bank (ECB) has cut interest rates by 25 basis points as expected. Geopolitical conflicts, showing no signs of easing, have also triggered a flight to safety for funds. On the fundamentals side, low silver inventory levels have provided support for silver prices. Currently, the gold-silver ratio is at a historical high, and the need for the ratio to correct, coupled with an influx of bullish funds into the market, are among the factors supporting the rise in silver prices. As of around 11:02 on June 6, COMEX gold rose by 0.38%, trading at $3,387.8 per ounce; COMEX silver rose by 1.236%, trading at $36.245 per ounce. On June 5, COMEX silver hit a new historical high of $36.27 per ounce since September 2011. The main SHFE gold contract fell by 0.22%, trading at 782.62 yuan/g; the main SHFE silver contract rose by 3.93%, trading at 8,803 yuan/kg, hitting a new historical high since its listing at 8,834 yuan/kg. Silver T+D rose by 3.89%, trading at 8,776 yuan/kg.

In the stock market: The precious metals sector has seen significant gains. As of around 11:04 on June 6, the precious metals sector led the gains across all industries with a 2.9% increase. Among individual stocks: Zhongrun Resources and Hunan Silver hit their daily limits, while Shandong Gold International, Shandong Humon Smelting, and Chifeng Gold were among the top gainers.

》Click to view SMM Futures Data Dashboard

Market News

[US Initial Jobless Claims Rise to Seven-Month High, Employment Market Cools]Data released by the US Department of Labor on Thursday showed that the seasonally adjusted number of initial jobless claims in the US for the week ending May 31 was 247,000, significantly higher than the expected 235,000, an increase of 8,000 from the previous week, and reaching its highest level since the week of October 5 last year. The four-week moving average of initial jobless claims in the US for the week ending May 31 was 235,000, also the highest since October last year. The number of continuing jobless claims in the US for the week ending May 24 was 1.904 million, slightly lower than the previous week, remaining above 1.9 million for the second consecutive week. The continued rise in initial jobless claims and the maintenance of a high level of continuing claims indicate that the US labour market is softening amid increasing economic headwinds caused by tariffs. (Webstock Inc.)

[ECB Cuts Interest Rates by 25 Basis Points to Counter Trump's Tariff Pressure!]On Thursday local time, after inflation reached the target level and the economy was repeatedly hit by Trump's tariffs, the ECB cut interest rates by 25 basis points as expected, marking the eighth rate cut within a year. Specifically, the European Central Bank cut its deposit facility rate by 25 basis points to 2%, while the main refinancing rate and marginal lending rate were lowered from 2.4% and 2.65% to 2.15% and 2.4%, respectively, marking the lowest levels since early 2023. The ECB stated, "Inflation is now close to the Governing Council’s 2% target. Although uncertainties surrounding trade policies are expected to weigh on business investment and exports, increasing government investments in defense and infrastructure will increasingly support medium-term economic growth."》Click for details

Silver Price Surges Above 8,400 yuan/kg Amid Strong Market Caution

》Click for spot precious metals prices

Boosted by the upward trend in silver futures, spot silver prices rose significantly on June 6. The average reference ex-works price of SMM1# silver in the morning session was 8,425 yuan/kg, up 245 yuan/kg (3%) from the previous trading day. According to SMM, TD warrant premiums for standard silver ingots in Shanghai were quoted at 3-5 yuan/kg on a cash spot basis, but downstream buyers remained cautious, with minimal transactions at high premiums. Market activity was sluggish, with some standard silver ingot suppliers offering discounts of 25 yuan/kg against the SHFE silver 2508 contract. Large-scale suppliers quoted premiums of 5-8 yuan/kg against TD warrants. Despite the post-Dragon Boat Festival surge in precious metals prices, downstream consumption showed no significant improvement, and market sentiment remained cautious, with only limited spot transactions for rigid demand.

Market Views

Huilin Wang, SMM silver analyst, discussed the topic "Silver Supply-Demand Evolution and Price Outlook" at the 2025 SMM (6th) Silver Industry Chain Innovation Conference, hosted by SMM Information & Technology Co., Ltd., co-organized by Ningbo Haoshun Precious Metals Co., Ltd. and Quanda New Materials (Ningbo) Co., Ltd., and sponsored by Fujian Zijin Precious Metals Materials Co., Ltd., Huizhou Yi'an Precious Metals Co., Ltd., Jiangsu Jiangshan Pharmaceutical Co., Ltd., Zhengzhou Jinquan Mining & Metallurgy Equipment Co., Ltd., Hunan Shengyin New Materials Co., Ltd., Zhejiang Weida Precious Metal Powder Materials Co., Ltd., Guangxi Zhongma Zhonglianjin Cross-Border E-Commerce Co., Ltd., Suzhou Xinghan New Materials Technology Co., Ltd., Yongxing Zhongsheng Environmental Protection Technology Co., Ltd., IKOI S.p.A, Hunan Zhengming Environmental Protection Co., Ltd., Kunshan Hongfutai Environmental Protection Technology Co., Ltd., and Shandong Humon Smelting Co., Ltd.. She noted: The aging population and rising global economic and political uncertainties have increased safe-haven demand, driving a downward trend in real interest rates; the PV and new energy sectors are experiencing rapid growth, with domestic demand stabilizing and export demand expected to rise; declining real interest rates may bolster medium and long-term allocations to silver assets. These bullish factors could support a medium and long-term upward fluctuation in silver prices.

Recommended Readings:

》SMM: Industrial demand and ETF investment demand may support silver prices to fluctuate upward in the medium and long-term [SMM Silver Conference]

》Analysis of Silver and Gold Price Trends from a Trader's Perspective [SMM Silver Conference]

》Spot Silver Surges 3% in Two Hours, Reaches New High Since 2012

》Is the Silver Rally Here? Analysts Emphasize $34 as a Key Level!

》Has the Gold Bull Market Just Begun? Analysts Say Historical Experience Indicates Prices Could Reach $4,500