Silver market remains in a standoff at the start of the month; spot market dominated by wait-and-see sentiment with sluggish trading [SMM Daily Review]

Today, SMM's 10:00 a.m. price for the Shanghai Gold Exchange Ag (T+D) was 16,263 yuan/kg, with premiums quoted in the range of TD-5 to +5 yuan/kg and a weighted average price of -0.46 yuan/kg.

Geopolitically, Trump stated he would take tough action against Iran, and the US is considering limited military strikes to curb Iran's rebuilding of radar and missile capabilities. A Saudi oil tanker was intercepted in the southern lane of the Strait of Hormuz, while the EU maintained pressure on Iran, keeping geopolitical risks a continued source of market disruption. Hawkish remarks at Jackson Hole are currently repricing rate hike risks, with US Treasury yields and the dollar rebounding, and market direction now depends on upcoming US inflation and employment data.

In the spot market, offers today were concentrated at TD-5 to +5 yuan/kg, with mainstream quotation premiums basically flat from yesterday. Early morning quotes in Shanghai were mainly near parity, with national standard silver ingot transactions concentrated around TD-5 yuan/kg. Wait-and-see sentiment was strong at the start of the month, trading was sluggish, and deals were mostly at slight discounts to parity. Today's premiums against the most-traded SHFE 2610 contract were quoted at a discount of 45 to 35 yuan/kg.

Overall, bullish and bearish sentiment continued to battle in the silver spot market at the start of the month. Short-term prices are expected to maintain a fluctuating trend, with the market awaiting further guidance from macro data and spot transactions leaning toward slight discounts.