Silver Halves Weekly Surge But China Demand 'Running Hot'

GOLD fell Thursday in London and silver almost halved this week's stellar gains as further signs of strong demand from China met a rising US Dollar after Donald Trump's pick to lead the Federal Reserve was confirmed for the job, denying that he's promised the President to cut interest rates.

Gold slipped back through $4700 per troy ounce yet again while silver prices dropped $4.50 to dip below $84 before rallying 50 cents and trading 5.1% higher from last Friday's London benchmark price.

With social media in the West catching up with March trade data showing record-heavy monthly imports of silver to China, "It is hard not to conclude that silver prices will continue to rise based on supply and demand fundamentals," says Bruce Ikemizu of the Japan Bullion Market Association.

Friends at a silver refinery in China, he says, are now processing "3-5 tonnes per day of investment-grade silver bars, mainly 1kg − typically a month's worth of production − and the bars are selling almost immediately."

Silver lease rates to borrow the industrially-useful precious metal in London today edged lower to 0.9% annualized on 1-month deals.

Far below last New Year and spring's jump in silver lease rates, never mind October 2025's all-time surge in lease rates amid London's "serious" supply squeeze, that was down 0.2 percentage points from Monday's sudden 7-week high, suggesting better availability of bullion in the world's central trading and storage hub.

"The West's false sense of superiority and ⁠immunity must be shattered by ⁠all of us," said war-hit Iran's Abbas Araghchi at today's summit of BRICS and other emerging-economy foreign ministers hosted by India, vowing to keep control of the vital Strait of Hormuz oil-tanker shipping route.

Also attended by Russia as it continues its war in Ukraine, the BRICS summit has been skipped by China while US President Trump meets with Xi Jinping in Beijing.

"The Taiwan question is the most important issue in China-US relations," Beijing media quoted Xi as he welcomed Trump and a delegation of US tech CEOs last night with what Western media call a lavish display of Communist and military "pomp" in Tiananmen Square.

"If mishandled, the two nations could collide or even come into conflict," Xi said.

Silver prices in Shanghai today showed a near $11 premium to London quotes inclusive of VAT sales tax, the strongest in almost a month.

Euro prices for gold in London meantime held above €4000 per troy and UK Pound prices also showed a small gain for the week so far at £3470.

The Pound meanwhile sank back to yesterday's 2-week lows as Wes Streeting, a former ally of ailing Prime Minister Keir Starmer and now likely to make a leadership challenge, quit the ruling Labour Party Government over what his resignation letter called "vacuum and drift where we need vision and direction."

But Gilt yields eased from multi-decade highs as UK debt prices rallied and the FTSE 250 index of UK-focused businesses gained 0.8% as the FTSE100 of more international corporations added 0.1% following stronger-than-expected UK GDP growth data for the January-to-March quarter.