CITIC Futures: If the geopolitical situation between the US and Iran and navigation through the Strait of Hormuz does not show significant easing, inflation pressures will continue to suppress the rebound and repair space for silver.

Both domestic and international silver prices have fluctuated and dropped, mainly due to continued inflation concerns as a result of escalating geopolitical conflicts between the US and Iran, leading to cautious investor sentiment. Silver is driven by macro factors in a similar way to gold, but with higher price sensitivity. Despite the US CPI and PPI data for June falling below expectations, slightly restoring market sentiment, inflation constraints from rising oil prices continue to exist, leading to overall weak investor sentiment. Furthermore, the driving force for silver spot prices remains weak. If there is no clear relaxation in geopolitical tensions between the US and Iran and in the situation in the Strait of Hormuz, inflation pressures will continue to suppress the rebound and recovery space for silver. Going forward, the focus will be on changes in oil prices and the US retail sales data for June which will be released this week.