Middle East Escalation Pressures Silver Prices, Spot Procurement and Sales Both Weak Ahead of FOMC [SMM Daily Review] - Shanghai Metals Market

AI desk brief

Shanghai gold exchange Ag (T+D) was quoted at 12,995 yuan/kg, with the premium range at TD parity to +15 yuan/kg and a weighted average price of 7.35 yuan/kg; versus the SHFE 2612 contract, it was trading at a 40-23 yuan/kg discount. SMM says Middle East escalation and higher oil/inflation/rate expectations are pressuring precious metals, with gold hitting a three-month low last Friday and silver printing a stage low, though the sharp selloff has left the market oversold and vulnerable to a technical rebound ahead of the FOMC.

In the Shanghai spot silver market, downstream buying has weakened after earlier restocking, while sellers are reluctant to cut further and are holding firm. Morning quotes are centered at a 20-30 yuan/kg discount to SHFE 2612, smelter ex-works is near TD parity, and basis is relatively firm at 35-45 yuan/kg; overall trading is thin as both sides wait for the Fed and fresh macro signals.