Wedoany.com Report on Feb 2nd, Precious metal prices at the Shanghai Futures Exchange and the Gold Exchange hit limit down today. Mainstream traders and manufacturers have generally suspended quotations, and market sentiment is dominated by a wait-and-see approach. A customer stated: "As we cannot close out positions to hedge, we have stopped trading to avoid valuation risks." This phenomenon has directly impacted the liquidity of the spot market.

In the Shenzhen spot market, while a small amount of speculative goods were quoted at fixed prices, suppliers showed little willingness to sell due to high procurement costs. Market indicative offers were concentrated in the range of 22,500 to 23,000 yuan per kilogram. Some suppliers are holding funds and waiting on the sidelines at the 24,000 yuan per kilogram level, further exacerbating the trading deadlock.

Although downstream companies showed some interest in bargain hunting, actual purchases were minimal due to the inability to price and concerns that prices might continue to be restricted tomorrow. Intense negotiations led to an almost complete stall in spot silver market trading. Market participants are generally adopting a cautious stance, waiting for the price trend to become clearer.