Silver Prices Rise Amid Cooling Rate Hike Expectations
Silver prices continued their upward trend on August 11, but spot discounts widened in response to higher prices. According to SMM's Daily Review, cooling rate hike expectations combined with buying support pushed silver prices higher.
The Shanghai Gold Exchange's Ag(T+D) fixing at 10:00 AM was set at 16,144 yuan/kg, with premium/discount quotes ranging from TD-10 to +5 yuan/kg and an average of -2.5 yuan/kg.
The Bank of Japan governor hinted at a rate hike in September, which may put pressure on the U.S. dollar index, but SMM notes that bull factors dominate the precious metals market, with prices expected to maintain a fluctuating upward trend in the near term.
In the spot market, silver prices curbed downstream demand, leading to transactions shifting to discounts, and the market focused on guidance from today's CPI data. If the data comes in weaker than expected, it will further boost gold and silver prices.