Bulls in silver took profits this week, leading to a brief pullback, while the premium in the spot market declined [SMM Weekly Review of Silver Market]

Macro side, the US May CPI data fell short of expectations across the board. Trump once again called on the US Fed to cut interest rates by 100 basis points, and risk-averse sentiment boosted the precious metals market. Regarding Sino-US trade, China and the US reached a framework for implementing the consensus reached during the phone call between the two heads of state and the Geneva talks. Despite the easing of some market pressures, the potential impact of tariff policies on inflation still warrants vigilance. Additionally, after Iran issued a stern warning about possible attacks on US military bases, Trump expressed "lack of confidence" in his ability to persuade Tehran to agree to shut down its nuclear program. The US also ordered a partial withdrawal from Iraq's test tubes and allowed military families to leave the Middle East, leading to a sudden escalation of tensions in the region.

[Economic Data] Bullish:

The US May unadjusted CPI year-on-year rate was 2.4%, compared to the previous value of 2.30% and the expected 2.50%;

 The US May seasonally adjusted CPI month-on-month rate was 0.1%, compared to the previous value of 0.20% and the expected 0.20%;

US EIA crude oil inventory for the week ending June 6 was -4.304 million barrels, compared to the previous value of -2.795 million barrels and the expected -1.035 million barrels.

[Spot Market] Silver: This week, silver prices ended their consecutive upward trend and pulled back under pressure after some bulls took profits and exited the market. As the delivery of the SHFE silver 2506 contract approached, the narrowing of the silver spot-futures price spread, coupled with weakening consumption, led to a continuous decline in the premium of the spot market. Towards the end of the week, spot national standard silver ingots in the Shanghai area were mainly traded at a slight discount, with many suppliers still maintaining a premium and hesitating to sell, with the intention of transferring to delivery warehouse. After silver prices dropped back slightly this week, downstream enterprises engaged in just-in-time buying the dip, and market transactions improved slightly compared to last week. PV: This week, the reference average price of solar cell rear-side silver paste ranged from 5,694 to 5,770 yuan/kg; the reference average price of solar cell front-side finger ranged from 8,576 to 8,690 yuan/kg; the reference average price of solar cell front-side busbar ranged from 8,526 to 8,640 yuan/kg.

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