[Silver Futures Market Performance]

On June 3rd, Shanghai Silver futures were temporarily quoted at 8423 yuan/gram, an increase of 2.42%. Today's opening price for Shanghai Silver futures was 8520 yuan/gram, with a current high of 8522 yuan/gram and a low of 8419 yuan/gram.

[Macroeconomic News]

Trump threatens to impose 50% tariffs on the EU. Trump's continuous challenges to global markets have caused risk appetite to fall back again. Trump's threat to the EU signals the restart of the tariff war cycle.

US President Trump stated that he would increase tariffs on imported steel from 25% to 50%. At the same time, Trump stated on social media that China had not complied with relevant trade agreements in May, but mentioned hoping to resolve the issue through high-level bilateral talks.

Before the second round of Russia-Ukraine talks held on Monday, June 1st, Ukraine claimed to have destroyed 41 Russian strategic bombers with drones, with approximately 34% of strategic bombers at major Russian airports being attacked. Geopolitical risks sharply increased due to the Russia-Ukraine conflict over the weekend, leading to significant upward movements in related commodity prices such as crude oil and gold. However, with the conclusion of direct Russia-Ukraine negotiations and news emerging of possible direct communication between leaders of major powers, further attention is needed on the next direction of geopolitical events to judge the sustainability of gold's rebound.

While the market is highly focused on the direction of the Federal Reserve's interest rate policy, Powell did not express his views on the US economy and future interest rate outlook in his speech. Some analysts commented that Powell's deliberate "silence" might be to avoid prematurely influencing market expectations before key data releases.

Chicago Fed President Austan Goolsbee stated that if the Trump administration's tariff measures ultimately prove less aggressive than initially announced, the Fed's policy rate is "very likely to be significantly lower" in the next 15 months.

Fed Governor Christopher Waller stated that assuming the effective tariff rate is closer to the lower tariff scenario, underlying inflation continues to make progress towards the 2% target, and the labor market remains robust, this would support "good news" rate cuts later this year.

[Institutional Views]

Galaxy Futures: Precious Metals Market Strong in Short Term, But May Still See Wide Fluctuations in Medium Term

Overall, in the short term, precious metals are showing a stronger trend due to Trump's increased tariffs on steel and aluminum and Ukraine's attacks on Russian military bases. However, in the medium term, given the currently high interest rates, the low probability of short-term rate cuts, and the gradual de-escalation of geopolitical conflicts, while the precious metals market is strong in the short term, it may still primarily experience wide fluctuations in the medium term.