US-Iran Strait tug-of-war, silver prices moved sideways [SMM Daily Review]

Published: Aug 04, 2026 10:45 (GMT+8)

Save

[SMM Daily Review: US-Iran Strait Games Tug-of-War, Silver Prices Move Sideways] SMM August 4 – The US and Iran hold different positions on the reopening of the Strait of Hormuz, leading to mixed bullish and bearish factors in precious metals. South Korea's central bank gold purchases provide medium and long-term support. Spot cargo offers are firm at the beginning of the month, with transactions remaining at parity, while weak demand persists.

Today, SMM’s 10:00 a.m. price for the Shanghai Gold Exchange Ag(T+D) was 14,251 yuan/kg, with the premium range quoted at parity against TD to +10 yuan/kg, averaging +5 yuan/kg.

On the macro front, Trump stated that the Strait of Hormuz might reopen on Tuesday (calling it “Iran’s last chance”), but Iran refused to fully open the strait before the war ends, and US-Iran representatives had no plans to meet within 24 hours. The Bank of Korea, for the first time in 13 years, planed to purchase domestically refined gold bars, with official buying providing medium- and long-term support for physical demand. Overall, the precious metals futures market saw mixed long and short forces and maintained a sideways consolidation pattern in the short term.

In the spot market, quotes were firm at the beginning of the month, with transaction support temporarily maintained near parity. This morning, the spot-futures price spread widened slightly, and trader quotes mostly leaned toward a discount of 50-60 yuan/kg against the SHFE silver 2610 contract. Smelters and downstream players reported transactions concentrated at TD parity to +5 yuan/kg. Shanghai’s morning quotes were mainly concentrated at TD parity to +10 yuan/kg; in Shenzhen, some standard-grade materials were quoted around parity, and although low-priced supplies existed, they did not significantly disrupt spot trade. Today’s market quotes for the most-traded SHFE 2610 contract were at a discount of 60 to 50 yuan/kg.

Overall, the waning of short-term risk-off sentiment and the rally in US stocks created overhead pressure, and silver prices are expected to trade within the $50-60/oz range. In the spot market, the supply side has yet to recover this month, while demand still hinges on export and PV orders; the overall weak picture has yet to improve.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

8 hours ago

[SMM Precious Metals Express]

China’s platinum group metal market takes a major step toward internationalization. Starting from September 28, platinum and palladium futures and options contracts on the Guangzhou Futures Exchange (GFEX) are open to qualified foreign investors. Launched in November 2025, the contracts have seen steady expansion of onshore trading volumes. Participation from overseas institutions is expected to further boost market liquidity and strengthen China’s influence in global platinum and palladium price formation.

8 hours ago

[SMM Precious Metals Express]

Valterra Platinum stated that the deployment of Jameson flotation cells at its Mogalakwena PGM mine has delivered remarkable cost, energy and carbon savings. The installation cuts truck movements by around 3,000 per annum, reduces smelting power consumption by 70.5 MWh and lowers CO₂ emissions by approximately 70,000 tonnes, with annual cost savings of ZAR 203 million. These benefits do not include additional gains from improved metal recovery rates.

8 hours ago

10 hours ago

Tharisa Places Karo Bond Proceeds in Escrow

[SMM PGM Flash] Tharisa said on 25 September that the net proceeds of its US$300 million, five-year secured bond had been placed in escrow after a major settlement condition was met. Issued through Arxo Finance at 98% of face value, the bond carries an 11% coupon. Tharisa intends to use the proceeds to complete its Karo Platinum project in Zimbabwe, subject to the remaining conditions for releasing the money. The escrow step advances financing for a proposed source of platinum group metals on Zimbabwe’s Great Dyke. The money has not yet been released to Tharisa, and Karo is not a completed mine. The company targets first ore to Karo’s mill in the fourth quarter of 2027; both the drawdown and that operating milestone remain ahead.

10 hours ago