Silver Prices Retreat from Highs While Premiums Hold Firm, Downstream Inquiries Increase and Transactions Warm Up [SMM Daily Review]

On the macro front, differing views within the US Fed and expectations of interest rate cuts have caused high precious metal prices to retreat. During the day, the spot-futures price spread for the TD-SHFE silver 2512 contract narrowed and inverted. The most-traded SHFE silver contract rolled over to the 2502 contract. Suppliers, due to limited inventory, continued to hold prices firm and were reluctant to sell. In the morning session in Shanghai, suppliers of national standard silver ingots traded small volumes at a premium of 22-25 yuan/kg against TD prices, while suppliers of large-brand silver ingots held prices firm at a premium of 25-30 yuan/kg against TD prices and were reluctant to sell. Around the delivery period for the SHFE silver 2511 contract, spot silver ingots gradually flowed into the market after delivery. Following the price correction, inquiries from downstream end-users increased, and spot market trading activity improved slightly WoW.