Today, SMM's 10:00 a.m. price for the SGE Ag (T+D) was 15,378 yuan/kg, with premiums quoted in the range of on par with TD to +20 yuan/kg, averaging +10 yuan/kg.
On the macro front, the first round of high-level US-Iran talks concluded in Switzerland, with both sides agreeing on a roadmap for a final deal within 60 days. Although signs of easing emerged in the Middle East, with the US relaxing sanctions on Iranian oil and issuing a 60-day temporary permit, causing Brent oil prices to pull back, the lagging nature of inflation data and uncertainties in the US-Iran negotiations still failed to correct expectations for US Fed interest rate hikes. The strengthening US dollar, coupled with rising US Treasury yields, continued to pressure precious metals.
Spot market side, overall consumption remained weak today. The drop in silver prices triggered some wait-and-see sentiment downstream, but overall transactions remained stable in premiums. Morning quotes in Shanghai were mainly concentrated from on par with TD to +20 yuan/kg. Approaching month-end, smelter exports were limited, traders offered higher prices, and actual transactions tended towards the low end. In other regions, low-priced cargoes were mostly cleared, though a small amount of low-priced cargoes remained. In Shenzhen, quotes mostly centered around on par with TD to +10 yuan/kg. Today, the market's premium/discount quotes against the most-traded SHFE 2608 contract were -40 to -20 yuan/kg.
Overall, precious metals were suppressed by the progress in US-Iran peace talks, and with strengthened expectations for US Fed rate hikes, they remained under pressure in the short term. The spot market consumption weakened, while transaction prices were relatively stable, mostly in small premiums.
![Precious Metals Futures Remain in the Doldrums, Spot Silver Market Transactions Have Recovered Somewhat [SMM Daily Review]](https://imgqn.smm.cn/usercenter/VCNvX20251217171735.jpeg)
