On Wednesday, silver prices on both domestic and international exchanges continued their decline, with Shanghai silver futures dropping over 4% intraday to reach a new low for the year. Data released Tuesday evening showed the preliminary reading for the US Composite PMI in June rose to 52.2, exceeding both the previous figure of 51.5 and the expected 52.1, marking a five-month high. The preliminary readings for both the US Manufacturing and Services PMIs in June were above expectations and previous values, indicating continued expansion in US business activity. Notably, the US Manufacturing PMI climbed to 55.7, its highest level since May 2022, with sub-indices showing simultaneous improvement in production and new orders, further alleviating concerns about a hard landing for the US economy. Market pricing now reflects a probability of over 50% for a Federal Reserve rate hike in September, pushing the US dollar index higher and putting downward pressure on silver.

On the geopolitical front, former President Trump stated that Iran had conceded to keep the Strait of Hormuz open and claimed Iran accepted "highest-level" inspections, suggesting continued easing of Middle East tensions. However, this provides only marginal support for precious metals. Looking ahead, the US May PCE data and the final Q1 GDP figures are scheduled for release on Thursday evening. Market focus will be on the direction of economic data and inflation performance. If expectations for Fed rate hikes intensify, silver prices may face further short-term downside pressure.