Today, SMM’s 10:00 am Ag (T+D) price from the gold exchange stood at 14,274 yuan/kg, with premiums quoted between TD-5 and +10 yuan/kg, averaging +2.5 yuan/kg.
On the macro front, the Middle East situation escalated sharply over the weekend as the Iranian Revolutionary Guard announced the closure of the Strait of Hormuz. The US Fed’s semiannual monetary policy report showed that previously strong inflation accelerated further in the spring, with headline PCE rising 4.1% YoY. Precious metals fell under the dual pressure of rising geopolitical risks and stronger rate hike expectations. Attention this week may turn to US CPI data for further market direction.
Spot market side, Monday’s trading atmosphere and quotations extended last Friday’s pattern. Overall demand was somewhat sluggish, with more sellers active, and downstream players mostly negotiated prices, with transactions generally near parity. Early session quotes in Shanghai were concentrated around TD parity to +10 yuan/kg. In Shenzhen, some standard-grade material circled around slight discounts to parity against TD. Low-priced cargoes continued to emerge in the market, with some banks also selling at the lower end. Today, the premiums against the most-traded SHFE 2608 contract were quoted at discounts of 30-15 yuan/kg.
Overall, the downward trend for precious metals remained intact, with escalating geopolitical conflicts and strong US economic data weighing again on the sector. Spot premiums stayed steady for another session, with deals closing near parity and demand still weak.
![Precious metals market saw deep long-short battle platinum price was in the doldrums intraday, spot market consumption was weak [SMM Daily Review]](https://imgqn.smm.cn/usercenter/nQsOk20251217171736.jpg)
