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

Jun 6, 2025 13:21

Source:SMM

[SMM Flash News: 8834! SHFE Silver Hits New High Since Listing! Precious Metals Sector Rises Over 3%, Hunan Silver Hits Daily Limit] Recently, the US economic data for May has been underperforming, with initial jobless claims rising to the highest level in seven months, a significant MoM decline in the US ADP employment data, and the ISM non-manufacturing index falling below the 50 mark, exceeding expectations. Concerns over a slowdown in US economic growth have intensified, leading to heightened expectations for US Fed interest rate cuts. The European Central Bank (ECB) cut interest rates by 25 basis points as expected. Renewed concerns over geopolitical conflicts have also triggered a flight to safety for funds. On the fundamentals side, low silver inventory levels have provided inventory-related support for silver prices. A series of factors, including the current historically high gold-silver ratio, the need for the ratio to correct, and the influx of bullish funds into the market, have all supported the rise in silver prices. As of around 11:02 on June 6, COMEX gold rose 0.38% to $3,387.8 per ounce; COMEX silver rose 1.236% to $36.245 per ounce, with COMEX silver hitting a new historical high of $36.27 per ounce since September 2011 on June 5; the main SHFE gold contract fell 0.22% to 782.62 yuan/g; the main SHFE silver contract rose 3.93% to 8,803 yuan/kg, hitting a new historical high since listing of 8,834 yuan/kg; silver T+D rose 3.89% to 8,776 yuan/kg.

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. Renewed concerns about geopolitical conflicts 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.

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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 rising to 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 climb in initial jobless claims and the sustained high level of continuing claims indicate that the US labour market is softening amid intensifying economic headwinds caused by tariffs. (Webstock Inc.)

[ECB Cuts Interest Rates by 25 Basis Points to Counter Trump's Tariff Pressures!]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 (ECB) lowered the deposit facility rate by 25 basis points to 2%, and the main refinancing rate and the marginal lending rate were reduced from 2.4% and 2.65% to 2.15% and 2.4%, respectively, reaching their lowest levels since early 2023. The ECB stated, "Inflation is currently near the Governing Council's 2% target. Although uncertainties surrounding trade policies are expected to exert pressure on business investment and exports, increasing investments by governments in defense and infrastructure will increasingly support medium-term economic growth." 》Click to view details

Silver prices surge, with only a small amount of just-in-time procurement in the spot market

》Click to view spot prices of precious metals

On June 6, the morning reference average ex-factory price of SMM1# silver was 8,744 yuan/kg, up 300 yuan/kg from the previous trading day, representing a 3.55% increase. According to SMM, following the surge in silver prices, there has been a decrease in long-term contract pricing activities, with a strong wait-and-see sentiment prevailing in the market. Only a small amount of just-in-time procurement transactions were concluded in the spot market.

Voices from Various Parties

Wang Huilin, an SMM silver analyst, delivered a speech on the theme of "Evolution of Silver Supply and Demand and Price Outlook" at the 2025 SMM (6th) Silver Industry Chain Innovation Conference, which was hosted by SMM Information & Technology Co., Ltd. (SMM), co-organized by Ningbo Haoshun Precious Metals Co., Ltd. and Quanda New Materials (Ningbo) Co., Ltd., and supported by sponsors including Fujian Zijin Precious Metals Materials Co., Ltd., Huizhou Yian Precious Metals Co., Ltd., Jiangsu Jiangshan Pharmaceutical Co., Ltd., Zhengzhou Jinquan Mining and Metallurgical Equipment Co., Ltd., Hunan Shengyin New Materials Co., Ltd., Zhejiang Weida Precious Metals 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 stated that factors such as the aggravation of the aging population, increased market risk aversion due to rising global economic and political uncertainties leading to a downward trend in real interest rates, rapid growth in the PV and new energy industries with a stabilization trend domestically and an expected increase in export demand, and the boost to medium and long-term capital allocation in silver assets due to the downward trend in real interest rates, among other bullish factors, are likely to support silver prices to fluctuate upward in the medium and long term.

Minmetals Futures pointed out: Market expectations for further interest rate cuts by the US Fed in H2 have strengthened. Driven by both economic data and statements from Fed members, although the market has not priced in a rate cut by the Fed in June, the probability expectation for a 25-basis-point rate cut at the September policy meeting has risen from 13.3% on May 1 to the current 97.5%. For precious metals strategies, it is recommended to go long on dips, as silver has greater potential for price increases. The reference trading range for the most-traded SHFE gold contract is 757-809 yuan/gram, while that for the most-traded SHFE silver contract is 8,545-9,500 yuan/kg.

Jinyuan Futures believes that, against the backdrop of gold hitting record highs this year, silver prices, both in absolute and relative terms, are at low levels, indicating a strong need for catch-up rallies. Recently, during the correction of gold prices, silver prices have shown remarkable resilience, suggesting a significant shift of funds towards silver. Silver prices have started to rally recently, and it is expected that the logic of silver's catch-up rally will continue.

Earlier this week, Robert Kiyosaki, author of "Rich Dad Poor Dad," posted on social media, "As I predicted in my 2013 book 'Rich Dad's Prophecy,' the biggest crisis in history is coming." "The best deal now is silver. By 2025, silver prices could triple." Kiyosaki specifically mentioned, "Tomorrow, I'm going to my local gold and silver dealer to exchange 'fake money' for real silver." 》Click for details

Michele Schneider, Chief Market Strategist at MarketGauge, stated that gold and silver prices have been consolidating, so she maintains a neutral stance on both. However, if silver prices firmly break through $34 per ounce, she will seek to buy, as reaching $40 is just a matter of time. (Cailian Press)

ANZ expects silver prices to continue rising to $34 per ounce.

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

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