Silver Prices Retreated after a Rapid Rise, Spot Cargo Transactions Tended towards Parity [SMM Daily Review]

Published: Aug 12, 2026 10:10 (GMT+8)

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[SMM Daily Commentary: Silver Prices Retreat After Rapid Rise, Spot Transactions Near Parity] SMM, August 12: Cooling rate hike expectations and a weaker US dollar supported silver prices, but insufficient upward momentum saw them pull back, and they are expected to drift higher in the short term. Transactions in the spot market are concentrated near parity, with overall weak demand.

Today, SMM’s 10:00 am Ag (T+D) price on the Shanghai Gold Exchange was 15,890 yuan/kg, with premiums quoted in the range of TD-5 to +5 yuan/kg, averaging 0 yuan/kg.

On the macro front, uncertainty in US-Iran negotiations persisted, with geopolitical risks fluctuating; the pullback in oil prices suppressed inflation expectations, but escalation could pose headwinds. After the US non-farm payrolls data weakened, September rate hike expectations cooled somewhat, and a weaker US dollar lent some resilience to precious metals, although momentum for further silver price breakthroughs remained insufficient. The market awaited guidance from CPI data.

In the spot market, supplier quotes overall edged up slightly today, with deals concentrated around parity, and low-end quotes becoming less frequent, though overall buyer momentum remained weak. In the Shanghai morning session, quotes were largely around parity to a premium of 5 yuan/kg against TD, with reduced purchasing by banking institutions weakening floor support; only some acceptance-driven demand saw need-based transactions, tilting overall toward parity. In Shenzhen, some nationally certified cargo was concentrated around slight discounts to parity, with both buyers and sellers cautious. Premiums for the SHFE most-traded contract 2610 were quoted at a discount from 65 to 55 yuan/kg today.

Overall, precious metals were poised to mainly consolidate and fluctuate in the short term, with silver trending firmer. In the spot market, selling pressure increased after silver prices rose, transactions were lackluster, and overall demand remained weak.

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.

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