Zinc prices rose during Monday’s trading on the London Metal Exchange, reaching their highest level in four months, after data showed that more than half of the exchange-registered inventories had been earmarked for withdrawal.

Data from LME warehouses revealed that total zinc inventories stand at 118,200 tons, with nearly 50%—approximately 59,900 tons—already allocated for delivery, raising expectations of tightening supply.

Natalie Scott-Gray, Senior Metals Analyst at StoneX, commented that it remains unclear whether the recent movement in inventories is driven by genuine demand or by commercial arrangements to benefit from storage yields.

She added in remarks to Reuters that if similar quantities are not returned to the exchange in the coming weeks, it could indicate real demand from the European market.

Meanwhile, the US Dollar Index fell by 0.7% to 97.7 points as of 16:19 GMT, after recording a high of 98.5 and a low of 97.7.

In trading, the most active zinc futures on the London Metal Exchange rose by 0.4% to $2,834 per ton, after touching $2,876—the highest level since March 28.

Silver prices rose in the European market on Monday, maintaining their gains for the fourth consecutive day, heading towards touching a 14-year high, amid strong flows and demand for the white metal.

The price increase is supported by the decline in the US dollar in the foreign exchange market, following less aggressive comments from one of the key Federal Reserve members regarding the future of US interest rates.

The Price

• Silver prices today: Silver rose by 1.0% to $38.55, from an opening price of $38.17, after recording a low of $38.10.

• At Friday’s settlement, silver prices rose by about 0.1%, marking the third consecutive daily gain, supported by the weakening of the US dollar.

• Silver prices lost 0.6% last week, marking the first weekly loss in the last three weeks, due to correction and profit-taking from the 14-year high of $39.13 per ounce.

Strong Demand

Silver prices have risen by about 7% since the beginning of July, heading toward a third consecutive monthly gain, thanks to strong industrial demand for the white metal, alongside a surge in retail demand, as the metal is considered undervalued compared to gold, which is trading near its historical highs.

Industrial Demand

Silver is widely used in green technology industries, such as solar panels, electric vehicles, and electronics, due to its excellent conductive properties.

Global forecasts suggest that the solar energy sector could consume 30% of annual silver production by 2030, as each solar panel requires about 20 grams of silver.

Global industrial demand has already reached record levels, and it is expected to reach 710 million ounces by 2025, which could further drive silver prices higher in the second half of this year.

Chinese Demand

Recent positive data from Beijing has renewed hopes of economic recovery in China, which will reflect in improved demand and the withdrawal of metals and commodities in the world's largest consumer.

In recent months, Chinese authorities have implemented a series of financial and monetary stimulus measures to support the economy, the world’s second-largest economy, in an attempt to recover from economic stagnation.

Retail Demand

Retail traders, in search of financial assets to hedge against the risks associated with the current shift in global central bank policies toward monetary easing, view silver as the most cost-effective and undervalued asset at the moment.

The current rise in silver prices comes with retail traders' awareness that the white metal is moving further away from its real value compared to gold, which is trading near its historical levels.

The US Dollar

The US Dollar Index fell by 0.6% on Monday, continuing its losses for the second consecutive session, moving away from a three-week high, reflecting the ongoing decline in the US dollar against a basket of major and minor currencies.

Aside from profit-taking, the US dollar continues to decline following comments from some Federal Reserve officials regarding the potential for a rate cut in July.

Federal Reserve Governor Christopher Waller stated on Friday that he prefers a rate cut at the July meeting, as he believes tariffs are likely to have a limited effect on inflation.

Waller added that the underlying data "does not indicate a healthy private-sector labor market," and that the Fed "needs to get ahead" of any potential slowdown in employment.

Waller's comments came amid near-daily criticism from US President Donald Trump toward Fed Chairman Jerome Powell for hesitating to cut interest rates.

Bitcoin rose during Asian trading on Monday morning, amid optimism over a series of US legislative moves aimed at regulating the cryptocurrency sector, despite continued investor caution.

The world’s largest cryptocurrency was last traded up 0.6% at $119,001.6, as of 02:25 a.m. Eastern Time (06:25 GMT).

The token had reached record levels above $123,000 last week but has since pulled back below $120,000 and is now consolidating near that level.

Legislative Progress in the US… But Investor Caution Remains

Last week, US President Donald Trump signed the “GENIUS Act,” which establishes a federal regulatory framework for issuing stablecoins.

The law requires stablecoin issuers to hold reserves in liquid assets such as US dollars or Treasury bonds, and to provide monthly disclosures. This move is considered a key step toward legitimizing the $260+ billion stablecoin market and more fully integrating it into the financial system.

Alongside the GENIUS Act, the US House of Representatives also passed two other major bills:

- The CLARITY Act, which aims to determine whether digital tokens fall under the jurisdiction of the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

- The Anti-CBDC Surveillance State Act, which prohibits the Federal Reserve from issuing a central bank digital currency (CBDC) without explicit congressional approval.

These three pieces of legislation formed a unified regulatory push during what has been dubbed “Digital Assets Week” in the United States, aimed at reshaping crypto sector regulation.

Despite this legislative momentum, investors remain cautious. The GENIUS Act requires the US Treasury Department to develop detailed implementing rules before it becomes fully enforceable—a process that could take several months.

Additionally, the Senate has yet to begin discussions on the two House-passed bills, leaving the broader regulatory outlook uncertain.

Bitcoin Moves Sideways After Hitting a New Record

Bitcoin posted a new all-time high of $123,218 on Monday before entering a sideways trading pattern between $116,000 and $120,000. As of the latest update Monday morning, the token is trading near $117,800.

If Bitcoin breaks below the lower bound of this consolidation zone at $116,000 on a daily close, the decline may extend toward its 50-day Exponential Moving Average (50 EMA), currently located at $110,297.

The Relative Strength Index (RSI) on the daily chart has dropped to 64 after falling from the overbought level of 70 last week, signaling a weakening of bullish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) is close to forming a bearish crossover on the daily chart. If confirmed on a daily basis, this would produce a sell signal and mark the start of downward momentum.

Conversely, if Bitcoin closes above the upper bound of the consolidation zone at $120,000 on a daily basis, it could reinforce the bullish trend and pave the way for a return to the $123,218 record high—and possibly beyond.

Oil prices edged lower on Monday amid expectations that the latest European sanctions on Russian oil would have limited impact on supply, while ongoing US tariffs continued to raise concerns about demand.

Brent crude futures fell by 38 cents, or 0.55%, to $68.90 per barrel as of 09:25 GMT, after closing down 0.35% on Friday. US West Texas Intermediate (WTI) crude slipped by 30 cents, or 0.45%, to $67.04 per barrel, after falling 0.3% in the previous session.

On Friday, the European Union approved its eighteenth sanctions package against Russia over the war in Ukraine, which also targeted India’s Nayara Energy—a refiner and exporter of petroleum products derived from Russian crude.

Harry Tchilinguirian of Onyx Capital Group said: “The latest round of European sanctions is unlikely to shift the oil market balance significantly. That’s why we’re not seeing a strong market reaction.” He added: “The Russians have demonstrated a high capacity to circumvent these types of sanctions.”

Kremlin spokesman Dmitry Peskov said on Friday that Russia has developed a kind of "immunity" to Western sanctions.

The EU sanctions followed threats from US President Donald Trump last week to impose penalties on buyers of Russian exports unless Moscow agrees to a peace deal within 50 days.

Analysts at ING Bank noted that the only component of the package likely to have a tangible effect is the ban on importing refined petroleum products made from Russian oil in third countries, though they added that enforcement and monitoring could be difficult.

Elsewhere, Iran—another oil producer under sanctions—is preparing to hold nuclear talks with Britain, France, and Germany in Istanbul on Friday, according to a spokesperson for Iran’s foreign ministry on Monday. The announcement comes after the three European nations warned that failure to resume negotiations would lead to renewed international sanctions on Tehran.

In the United States, Baker Hughes reported on Friday that the number of active oil rigs fell by two to 422 last week, marking the lowest level since September 2021.

US tariffs on EU imports are set to take effect on August 1, though US Commerce Secretary Howard Lutnick said on Sunday he remains confident that the country can reach a trade agreement with the bloc.

Tony Sycamore, market analyst at IG, said: “Tariff-related concerns will continue to weigh on the market as the August 1 deadline approaches, though some support could come from inventory data if it shows signs of tight supply.”

He added: “It looks like the market is heading for a trading range between $64 and $70 over the coming week.”

It is worth noting that Brent crude futures have recently traded between a low of $66.34 per barrel and a high of $71.53, following a ceasefire agreement reached on June 24 that ended a 12-day war between Israel and Iran.