Economic Observation Network Under the renewed tension in the geopolitical situation between the United States and Iran, market risk appetite has converged. The rise in oil prices has reignited inflation concerns and strengthened market bets on a Fed rate hike within the year. Multiple factors have dragged down silver prices. On the one hand, the resilience of the US economic data still exists, with the latest Chicago Fed National Activity Index for April being 0.14, significantly better than the previous value of -0.15. The May Conference Board Consumer Confidence Index and Current Situation Index in the United States have both fallen from previous values, but the confidence index is still better than market expectations. The combination of the resurgence of the US Iran situation has pushed up oil prices, triggering market concerns about inflation, and strengthening the valuation of the Federal Reserve's interest rate hike at the end of the year. On the other hand, the silver spot drive is still weak, and the silver leasing interest rate in the London market continues to operate at a low level. Short term silver continues to fluctuate, and overall fund heat remains low. We are paying attention to the progress of the US Iran negotiations and the resumption of cross-strait flights. If the US Iran negotiations proceed smoothly, it is expected to drive a short-term rebound in silver, but interest rate expectations still suppress the trend. If the geopolitical situation escalates again and pushes up oil prices, we need to be vigilant about further suppression of the elasticity of silver industrial products in the medium term and possible supply disruptions. In the long-term dimension, the weakening of US dollar credit, security needs, and investment demands provide solid support for silver prices. (CITIC Futures)