Macro-wise, the market is currently focused on Trump's nominations for the US Fed, with significant short-term uncertainties. Expectations of an interest rate cut have boosted precious metal prices. In the spot market, after silver prices rose for four consecutive trading days, the spot-futures price spread for SHFE Silver 2510-TD contract remained at 30-33 yuan/kg. The high premium of suppliers against TD has made downstream end-users cautious and watchful. According to SMM, in Shanghai, standard silver ingots with immediate payment were quoted at a 5 yuan/kg premium against TD warrants, but transactions were sparse. Suppliers quoting against the SHFE Silver 2510 contract maintained a discount of 22-24 yuan/kg, or a 4-5 yuan/kg discount against the SHFE Silver 2508 contract. Most suppliers indicated a low willingness to sell under the current spot-futures price spread, generally holding back and watching. Additionally, as silver prices strengthened, downstream buyers only made just-in-time procurement, leading to a decline in inquiries and purchases, resulting in a quiet spot market.
