Hong Kong Silver Spot Discount Widens as Inventory Pressures Persist

This week, precious metals first declined then rose. ADP employment data significantly missed expectations, causing rate hike expectations to pull back rapidly, and silver prices rebounded strongly to hit a new high in nearly two months. In the short term, focus on the revision of rate hike expectations by the non-farm payrolls data. In the medium and long term, US debt risks and the turning of the interest rate cycle will continue to support precious metals.

[SMM Precious Metal Express] US July ADP employment came in at 44,000, below the expected 70,000 and prior 95,000, marking the smallest gain since January. Weaker jobs data reinforced Fed rate-cut expectations, sending spot gold up over $200 from its session low at one point, closing 4.16% higher at $4,247.02/oz — its largest single-day gain since early February. Spot silver climbed above $62/oz, closing up 4.26% at $62.06/oz.