SMM August 7 News: Metal Markets: Overnight, base metals on the domestic market broadly rose. SHFE copper edged up 0.1%. SHFE aluminum gained 0.38%. SHFE lead edged up 0.1%. SHFE zinc rose 1.11%, while SHFE tin fell 0.98%. SHFE nickel dropped 1.22%. Additionally, the most-traded alumina futures contract edged up 0.09%, while the most-traded foundry aluminum contract fell 0.52%. Overnight, ferrous metals all rose. Stainless steel edged up, iron ore gained 0.35%, and rebar rose 0.17%. Hot-rolled coil (HRC) increased 0.59%. For coking coal and coke: the most-traded coking coal futures contract rose 1.54%, and the most-traded coke contract gained 2.48%. Overnight, on the overseas market, LME base metals mostly fell. LME copper shot up to an intraday high of $14,369.5/mt, a level not seen since January 29, before eventually closing with a 0.4% decline. LME aluminum gained 0.65%. LME lead fell 0.29%. LME zinc rose 0.64%. LME tin dropped 1.43%. LME nickel fell 2.45%. Overnight Precious Metals : COMEX gold fell 0.15%, and COMEX silver dropped 0.81%. Overnight, the most-traded SHFE gold futures contract fell 0.01%, and the most-traded SHFE silver contract declined 0.93%. Closing prices as of 7:03 AM, August 7: Macro Front Domestic (China) News: [Guangdong: Promote the Integration of Futures and Spot Markets for Key Commodities like Iron Ore, Crude Oil, and Rubber to Enhance Pricing Influence on Bulk Commodities] The "15th Five-Year Plan for the Development of the China (Guangdong) Pilot Free Trade Zone (Draft for Comments)" was released for public comment. It mentioned plans to expand financial opening-up in an orderly manner. International financial institutions will be encouraged to set up headquarters in the zone, promoting the development of cross-border finance, innovative finance, venture capital and investment, wealth management, futures trading, asset management, specialty finance, and offshore services. The Plan aims to accelerate the implementation of projects like the Guangdong-Hong Kong-Macao Greater Bay Area International Commercial Bank and the GBA Insurance Service Center. It supports expanding the scale of commodity trading and promoting the integration of futures and spot markets for key commodities like iron ore, crude oil, and rubber to enhance their pricing influence. The Plan will promote the quality improvement and upgrade of fintech regulatory pilots and expand digital yuan application scenarios. It supports pilot programs for cross-border financial innovations such as offshore finance and green finance, and will promote the expansion of pilot programs like cross-border Wealth Management Connect and digital yuan cross-border payments. Institutions within the zone will be supported in developing specialty products like cross-border supply chain finance and intellectual property-pledged financing, and market entities will be guided to develop composite financial products. Pilots for cross-border credit asset transfers and multi-currency integrated accounts will be deepened to promote wider mutual recognition and connectivity of cross-border financial products. (Guangdong Department of Commerce) [CAAM: June Auto Commodity Import and Export Value Hits $31.82 Billion, Up 35.5% YoY] According to data from the General Administration of Customs compiled by the China Association of Automobile Manufacturers (CAAM), the total import and export value of auto commodities in June 2026 was $31.82 billion, up 8.0% MoM and up 35.5% YoY. The import value was $3.39 billion, down 6.1% MoM and down 18.7% YoY; the export value was $28.43 billion, up 10.0% MoM and up 47.2% YoY. From January to June 2026, the cumulative import and export value of national auto commodities totaled $164.74 billion, up 25.5% YoY. The import value was $19.25 billion, down 11.8% YoY; the export value was $145.49 billion, up 33.0% YoY. (Jin10 Data APP) US Dollar: Overnight, the US dollar index rose 0.26% to 99.95. Escalating geopolitical tensions weighed on both US stocks and bonds, causing them to fall. Oil prices jumped, reigniting inflation concerns ahead of the key US employment report. Market focus now turns to Friday's US employment report for new clues on the Federal Reserve's policy path. Stronger-than-expected jobs data could reinforce the case for higher-for-longer interest rates, while any escalation of tensions in the Middle East could push up energy prices and intensify market fluctuations. UBS analyst Ulrike Hoffmann noted: "Short-term risks remain, especially if US data remains firm, oil prices continue to fuel inflation concerns, or the market continues pricing in a more hawkish Fed rate path." Interactive Brokers Senior Economist José Torres stated: "Wall Street reversed again from recent strong gains as the lack of clarity concerning the Strait of Hormuz led investors to question whether the robust rally early this week was justified." (Jin10 Data APP) According to the CME "FedWatch" tool: The probability of the US Fed keeping rates unchanged by September is 45%, while the probability of a cumulative 25 basis point hike is 55%. The probability of the Fed keeping rates unchanged through October is 31%, while the probability of a cumulative 25 basis point hike is 51.9%, and a cumulative 50 basis point hike is 17.1%. (Jin10 Data APP) According to a report by the UK's Financial Times, even after a decision not to reveal too many details on rate strategy triggered a sharp sell-off in government bonds, Fed Chairman Warsh is sticking with his usual concise communication style. People close to Warsh say he acknowledges making some mistakes during his first 10 weeks at the helm of the world's most important central bank, including failing to reinforce his key message on price stability and creating confusion over whether his long-term plan to reform the Fed could influence near-term policy decisions. However, they insisted those mistakes were not enough to derail Warsh's reform plans for the Fed. People familiar with the matter also revealed that Warsh is prepared to raise interest rates at the September meeting if upcoming inflation data proves strong and market expectations for higher borrowing costs rise accordingly. The sources added that while the Fed Chairman raised the possibility of shrinking the central bank's $6.7 trillion balance sheet to tighten monetary policy, interest rates remain the primary tool for now and will be used at upcoming meetings if necessary. (Jin10 Data APP) Macro Events: Data releases today include France's Q2 ILO unemployment rate, Germany's June seasonally adjusted industrial output MoM, Germany's June seasonally adjusted trade balance, the UK's July Halifax seasonally adjusted house price index MoM, France's June trade balance, Switzerland's July consumer confidence index, Canada's July employment change, the US July unemployment rate, US July seasonally adjusted non-farm payrolls, US July average hourly earnings YoY, US July average hourly earnings MoM, US July New York Fed 1-year inflation expectations, China's July US dollar-denominated trade balance, China's July foreign exchange reserves, and China's July trade balance data. Watches: 2028 FOMC voter and St. Louis Fed President Musalem speaks on the US economy and monetary policy; 2027 FOMC voter and Richmond Fed President Barkin delivers remarks. Crude Oil: Overnight, both oil futures rose, with US oil gaining 4% and Brent oil surging 4.57%. Geopolitical risks rekindled, causing oil prices to spike sharply. Wall Street CN mentioned that the new navigation agreement for the Strait of Hormuz, proposed to be signed by Iran and Oman, revealed significant details again, indicating Iran's bid to control the strait. Furthermore, Iran has taken action, striking "enemy targets" near the strait. Iran's Fars News Agency (FARS) reported on Thursday, August 6, local time, that Iran's parliament is reviewing this agreement. Under the agreement, US and Israeli vessels will be barred from transiting the Strait of Hormuz, and nations that have "caused harm to Iran" will also be denied passage permits. Following this news, concerns over risks to global energy transportation rapidly intensified in the market. (Wall Street CN) Saudi Arabia cut its main crude oil price for Asia as negotiations proceed on an agreement aimed at easing shipping pressure in the Strait of Hormuz. The price cut came despite Houthi threats jeopardizing the alternative eastbound crude route via the Red Sea. According to a price list, state oil company Saudi Aramco reduced the price of its Arab Light crude for delivery to Asian clients next month by $0.50 per barrel, setting it at a $2/bbl discount to the regional benchmark. A prior survey showed traders expected Saudi Aramco to keep its flagship crude price unchanged. Global benchmark Brent crude prices fell sharply this week and are now trading near $80/bbl. (Jin10 Data APP) Over the past two months, the UAE has transported more crude oil through the Strait of Hormuz than any other producer, providing a critical supply buffer to a global market suffering from a historic energy crisis. According to energy data firm Kpler, a Very Large Crude Carrier (VLCC) loaded with Emirati cargo appeared in the Gulf of Oman on Tuesday after turning off its Automatic Identification System (AIS) signal at the end of July. The tanker carries crude from the Abu Dhabi National Oil Company. This is just one of dozens of similar tankers that have departed the Persian Gulf since the Abu Dhabi National Oil Company (ADNOC) began implementing a new sales strategy. According to trading sources familiar with the matter, since early June, ADNOC has sold over 130 million barrels of crude oil through seven unprecedented tenders. (Jin10 Data APP)

[SMM Tin Morning Update: Dollar Pullback Hedges Pre-NFP Rate Hike Pricing, Battle for the 430,000 Mark Begins]

Published: Jul 29, 2026 - 3:35 AM (Kitco News) - The gold market is struggling to hold support above $4,000 and could face further selling pressure, as one bank says a recovery remains unlikely as long as the war in Iran persists. On Tuesday, commodity analysts at Commerzbank led by Thu Lan Nguyen downgraded their gold price forecast for the second time in as many months. The German bank now expects gold prices to end the year around $4,500 an ounce, down from its revised June forecast of $4,800. At the same time, Commerzbank also lowered its year-end silver price target to $67 an ounce from its previous estimate of $80 an ounce. In the report, Nguyen said the price downgrade reflects the fact that persistent inflation pressures continue to force the Federal Reserve to maintain a tightening bias. However, she added that market expectations have become too aggressive, giving gold prices some room to recover from their current lows by the end of the year. She added that gold still has a path to $5,000 an ounce in 2027 if inflation pressures moderate. However, she said the biggest factor remains the uncertainty surrounding the war with Iran, saying that the ongoing conflict in the Middle East continues to overshadow all the bullish factors that drove gold prices to record highs at the start of the year. “This is partly because the US, as an energy exporter, benefits from the current energy crisis – as evidenced by the sharp rise in its oil exports in recent months. The risk premiums in the foreign exchange market are sending a similar signal: After Liberation Day – i.e. the introduction of extensive US tariffs by the US government – hedging against a depreciation of the dollar relative to the euro became significantly more expensive (as reflected in positive EUR-USD risk reversals, see figure below). Since the outbreak of the Iran war, however, the dollar has again been regarded as safer than the euro. As long as this remains the case, gold is unlikely to benefit disproportionately from increased demand for safe havens,” she said. Despite the heightened geopolitical uncertainty, Commerzbank said there is little evidence that the conflict is having a lasting impact on the U.S. economy. Nguyen pointed out that although near-term inflation pressures have increased, long-term inflation expectations remain anchored. She said that in this environment, it is unlikely the Federal Reserve will adopt a sufficiently aggressive monetary policy stance to alter gold's longer-term bullish outlook. “There is potential for the gold price to recover from its current level, as we consider current market expectations of Fed rate hikes to be excessive and anticipate that Fed interest rates will remain unchanged until the end of the year. The Fed is likely to raise interest rates only if inflation trends force them to do so,” she said. “Our economists’ base-case scenario, in which core inflation does not rise significantly above the assumed monthly rates consistent with the target in the coming months, remains unchanged. In this scenario, the Fed would likely refrain from raising interest rates and might even cut its key interest rate from mid-2027 onwards, as the 2% target would then be reached in spring 2027.” Nguyen explained that although gold’s months-long correction has damaged market sentiment, there are still significant long-term drivers supporting higher prices. Nguyen said the bank's long-term bullish outlook remains intact because the structural drivers that fueled gold's rally earlier this year have not disappeared. She noted that growing skepticism toward the U.S. dollar as a traditional safe-haven asset, driven by unpredictable U.S. policy, continues to support demand for bullion. At the same time, the freezing of Russia's foreign exchange reserves has prompted many central banks to reassess the security of their reserve assets, accelerating diversification into gold. Finally, mounting government debt across advanced economies has raised concerns about the long-term safety of sovereign bonds, further enhancing gold's appeal as an asset that is institutionally independent and carries no default risk. Source： https://www.kitco.com/news/article/2026-07-28/commerzbank-downgrades-gold-and-silver-prices-middle-east-conflict-takes

[Ministry of Commerce: China Never Deliberately Pursues Trade Surplus; Overall, Current Account Surplus as a Share of GDP Is Within Internationally Recognized Reasonable Range] On July 28, the Ministry of Commerce released a document titled "China’s Position on the So-called 'Overcapacity' Issue," pointing out that China never deliberately pursues a trade surplus. China’s export growth stems from economies of scale and enhanced innovation capacity, as well as demand from other countries' green transition and industrialization. For example, China's export growth to Europe is mainly concentrated in PV, NEVs, lithium batteries, and chemical products, largely reflecting the demand for energy products driven by the green transition, and the energy crisis has raised production costs in European industries such as chemicals. China also never deliberately pursues export share in labor-intensive products; the share of such product exports dropped from 20.7% in 2012 to 15.1% in 2025. In terms of trade benefit distribution, "the surplus is in China, but the benefits are shared by all." In 2025, foreign-invested enterprises accounted for 27% of China's exports and 16% of its surplus, with both surplus and profit growth faster than those of domestic enterprises. From the perspective of the overall balance of payments, although China has a sizable surplus in goods trade, it runs deficits in services trade and investment income. Overall, the current account surplus accounts for about 3.7% of GDP, which is within the internationally recognized reasonable range.

The global secondary copper industry is at a critical stage of tightening resources, green transformation, and intensifying global competition. As environmental protection policies continue to tighten and the energy crisis deepens, secondary copper is playing an increasingly prominent role in alleviating the tight supply of primary copper and driving low-carbon development, thanks to its significant environmental advantages and economic value. Currently, the global copper industry chain faces multiple pressures, including fragile supply, demand transformation, and low-carbon upgrading. Major economies are listing copper as a critical mineral, and international competition over secondary copper resources is becoming increasingly fierce. Optimizing the industry chain structure, improving recycling efficiency, and aligning global standards have become the top priorities for the industry. To help the industry fully grasp global policy trends and market dynamics, SMM and Eishin Corporation jointly produce , which focuses on industry development directions and conveys market insights, aiming to provide practitioners with an authoritative and professional industry distribution guide. (Click the link for a free copy: ) The Shinto Holdings Group, through its subsidiaries Kitayama Corporation, Ryuichi Corporation, and Eishin Corporation, operates logistics and 30 business locations across Japan, developing a recycling network for secondary copper and non-ferrous metals, international resource circulation, and logistics and import-export trade in Europe, America, and Asia. It builds a resource circulation platform utilizing AI and DX to contribute to a sustainable future society. Eishin Corporation www.essyoji.com yuei2222@yahoo.co.jp Li Jiabao WeChat: lijiabao7777 16-2 Hachikenyadani, Hirono-cho, Uji-shi, Kyoto-fu 611-0031 TEL: 0081-774-41-2118 FAX: 0081-774-41-2285 SMM Co-Production Contact Person Liu Mingkang 156 5309 0867 liumingkang@smm.cn

H1 2026 silver saw a sharp spike to 30,900 yuan/kg in January, then plunged 55% to 13,816 yuan/kg by June, driven by squeezed spot liquidity and Fed policy reversal from easing to hawkish. Supply grew steadily; PV silver demand fell 21% YoY. H2 outlook: wait for inflation signals and Fed pivot, silver likely remains under pressure.

In H1 2026, silver experienced an extreme market trend marked by a sharp-peaked inverted-V and stepwise decline, driven by the interplay of two main themes: a spot silver squeeze anomaly and a shift in US Fed monetary policy. After hitting an all-time high of 30,900 yuan/kg in January, silver prices pulled back trend-wise to 13,816 yuan/kg in June, as interest rate cut expectations reversed and hawkish signals strengthened, representing a 55% pullback from the peak. On the supply side, silver ingot production rose 6.9% YoY, and imports surged before returning to normal. On the demand side, PV silver demand fell 21% YoY, with industrial demand taking over from investment as the main driver. In H2, attention will focus on the inflation turning point and marginal changes in the US Fed's policy; silver prices are expected to consolidate on a subdued note.

July 8, 2026 Counter-cyclical buying is helping to stabilise prices The recent price dip in the gold market has triggered targeted purchases by central banks. During a period of technical weakness, in which the gold price fell below its 200-day moving average of US$4,500 per ounce and temporarily dipped below the US$4,000 mark, analysts are increasingly seeing signs of a sustainable bottom forming. This is being significantly supported by counter-cyclical demand from the official sector. The People’s Bank of China, in particular, seized the opportunity and purchased 15 tonnes last month. This marks the largest monthly purchase this year and the 20th consecutive month of rising reserves. According to the World Gold Council , China’s official holdings now total 2,346 tonnes, representing an increase of just over 40 tonnes since the start of the year. International diversification beyond China Alongside China, other nations are also emerging as major buyers on the gold market. Uzbekistan increased its reserves by a further 9 tonnes in June and, with 41 tonnes since the start of the year, is currently the second-largest buyer. However, based on data up to May, the National Bank of Poland remains the frontrunner with net purchases of a remarkable 64 tonnes. This underlines that institutional interest is geographically widespread and that global price dips are being used to strategically build up reserves. De-dollarisation as a long-term catalyst Although some countries have recently had to liquidate their gold reserves to prop up their currencies in the wake of the global energy crisis triggered by the Iran conflict, institutional demand is likely to pick up again in the second half of the year. Experts point to the undisputed trend towards de-dollarisation. As soon as oil-producing countries start recording higher revenues again, it is expected that this capital will flow less into US government bonds and instead increasingly into the gold market. For central banks worldwide, the precious metal thus remains an essential strategic component of their reserves, the long-term accumulation of which is consistently pursued during price declines. Source： https://goldinvest.de/en/gold-price-slump-why-central-banks-are-now-buying-gold-on-a-massive-scale

Published：June 25, 2026 According to experts at Bank of America (BofA), the recent pullback in the gold market is less a cause for concern and more of a strategic buying opportunity. Although the changed macroeconomic environment is forcing analysts to postpone their extremely bullish $6,000 price target until spring 2027 for the time being, they say it is precisely this correction that now opens up lucrative prospects. The long-term fundamental setup has remained completely intact—and massive valuation discounts have formed, particularly in mining stocks, according to the analysts. Macro Weakness as a Strategic Window of Opportunity The fact that the price of gold has recently slipped below the key $4,000 mark is primarily due to short-term interest rate fears. The geopolitical conflict between the U.S. and Iran, as well as the resulting global energy crisis, are forcing central banks to consider interest rate hikes instead of the hoped-for cuts. According to the CME FedWatch Tool , the market has almost fully priced in an interest rate hike for December. For strategic investors, however, this very interest-rate-driven period of weakness could open up an attractive window of opportunity. According to major investment banks such as BofA, UBS, and Goldman Sachs, the structural drivers of the gold price remain completely unaffected by the current interest rate debate: the spiraling U.S. budget deficits and the unstoppable trend toward de-dollarization are providing massive support to the market. A recent survey shows just how much potential still exists on the buying side: Nearly 75 percent of central banks want to reduce their dollar holdings, which is likely to inevitably lead to further gold purchases by central banks. At the same time, retail investors are significantly underinvested; gold investments currently account for only about 5.5 percent of global portfolios. Gold Mining Stocks: The Lever of the Current Correction BofA identifies the greatest opportunity in the current market environment in the gold mining stock sector. The correction in the spot market has led to discrepancies here that offer investors an asymmetric risk-reward ratio. A price-to-net asset value model from BofA shows: On average, the producers under observation are pricing in a gold price of just $3,354 per ounce. This means the sector is still trading at a massive 19 percent discount to the already-corrected spot price. This undervaluation is widespread across the entire industry, but the broad diversification also offers scope for targeted stock picking. While Wheaton Precious Metals (NYSE: WPM) has an implied gold price of $4,395 in BofA’s calculation, Franco-Nevada (NYSE: FNV) sits at the lower end of the valuation range with an extremely conservative $2,416. Bank of America’s conclusion: Investors who can withstand short-term interest rate volatility will currently find rare entry points in a structurally supported market. Source： https://goldinvest.de/en/gold-sell-off-opens-up-new-opportunities-especially-for-mining-stocks

June 23, 2026 The price of gold is currently feeling the full brunt of U.S. monetary policy. Bank of America, which was still among the market’s biggest optimists as recently as January and had forecast a rapid rise to $6,000 per ounce by spring, has had to adjust its short-term outlook. While the long-term fundamental arguments in favor of the precious metal remain intact, the Federal Reserve’s radically changed interest rate outlook is now forcing the analyst team to adopt a more defensive stance—at least in the short term. Interest Rate Hikes Instead of Cuts: The Fed’s Inflation Trap The key headwind for gold is the abrupt reversal in interest rate expectations. While investors were still firmly expecting interest rate cuts at the start of the year, the war in Iran has sparked a global energy crisis and massively fueled inflation concerns. The CME FedWatch Tool now puts the probability of another rate hike by September at over 70 percent. This restrictive environment weighs on the non-interest-bearing precious metal, as rising bond yields drive up the opportunity cost for gold investors. This shift from an environment of “inflationary rate cuts” to tight monetary policy cuts gold’s immediate upside potential in half, according to BofA. The problem: Even a swift peace agreement would hardly resolve the persistent inflation immediately, given established Trump tariffs, strained supply chains, and rising housing costs. Gold is thus caught in a short-term dilemma: While it benefits as a classic hedge against inflation, it is held back by the central bank’s necessarily restrictive stance. Megatrends remain intact: The structural fundamentals are growing Despite these headwinds, Bank of America is sticking to its overarching bullish scenario, as the U.S. macroeconomic environment provides the perfect breeding ground for higher prices. A ballooning budget deficit of around six percent of gross domestic product and a lack of fiscal consolidation are increasingly raising doubts about the sustainability of the U.S. debt burden—especially as foreign investors are already reducing their holdings of U.S. Treasury bonds. This is accompanied by global de-dollarization: According to recent surveys, 74 percent of central banks expect the dollar’s share of global reserves to decline over the next five years. This promises sustained strong purchasing power from the central banking sector. Once the looming interest rate hikes are fully priced in or off the table, investment demand is also likely to surge significantly. Currently, gold investments account for only 5.5 percent of global equity and bond markets. Analysts at Bank of America see enormous potential for growth here, particularly as institutional investors are shifting from the traditional 60:40 portfolio toward a 60:20:20 structure, in which alternative hedges such as gold are given significantly greater weight. For forward-thinking commodity investors, the report thus paints a clear picture: The short-term correction driven by interest rate policy merely masks massive, structural upside potential. Source： https://goldinvest.de/en/is-the-gold-correction-an-opportunity-bofa-sticks-to-its-usd6-000-target-despite-headwinds-from