Latest Update in the SMM Gold Market

[SMM Commentary: US Fed's "Hawkish Rate Cut" Hits Precious Metals, Intense Back-and-Forth Negotiations Persist in Spot Silver Market] The US Fed cut interest rates by 25 basis points as expected during its December policy meeting. However, Fed Chairman Jerome Powell stated that when considering the future path of rate cuts, Fed policymakers want to see more progress in reducing the inflation rate. The Fed's published interest rate "dot plot" indicates that only two more rate cuts are expected by 2025. Compared to the September dot plot forecast, the planned number of rate cuts has been halved—at that time, four rate cuts were expected next year. The Fed's "hawkish rate cut" has put pressure on precious metals.

Entering 2024, the average price of SMM #1 silver increased by 30% YoY, and the significant price surge has provided strong production incentives for the mining market.

In November, silver production decreased, with 16 enterprises reporting reduced production.

In November, silver prices were under pressure.

The cost of metals is closely tied to economic conditions and may lead to substantial changes over time, for individuals working in this industry who understand the intricate and multifaceted nature of these influences.

Last week, the Russia-Ukraine conflict intensified, and a US Fed voting member expressed views indicating that next year's interest rates will be lower compared to this year.

SMM, Nov 25: In October, silver ingot exports rose slightly by 1.9%, while imports fell 28.3% MoM;

Today, silver prices slightly fluctuated.