Silver Prices Rebound as Spot-Futures Spread Widens and Market Activity Picks Up

Silver prices halted their decline and experienced a rebound, leading to an increased gap between spot and futures prices; trading activity in the market showed signs of improvement. At the start of the week, silver on the Shanghai Gold Exchange (Ag T+D) stopped falling and briefly surpassed 9,000 yuan per kilogram before slightly retreating. In the spot market, SMM reported that cash silver bullion warrants in Shanghai were quoted with a premium of 3-5 yuan/kg over the T+D, or at a discount of 22-23 yuan/kg compared to the SHFE silver 2510 contract. Some smelter-origin cargoes were priced at a discount of 25-27 yuan/kg against the same futures contract. Large-scale factory-produced spot silver maintained a modest premium of 5-6 yuan/kg over T+D. Market participants showed increased purchasing interest at lower prices, especially as the price spread between spot and futures widened, prompting more inquiries and buying activity. Nonetheless, end-users remained cautious, resulting in a slight week-over-week improvement in overall spot trading volume.