Copper prices rose during Monday’s trading, supported by a weaker US dollar against most major currencies, in addition to a decline in inventories of the industrial metal in China.

Copper inventories in China recorded their largest weekly drop this year, while prices had fallen sharply due to the Iran-related war, prompting stronger demand from manufacturers, according to a Bloomberg report on Monday.

Refined copper inventories across China declined by 78,700 tons in the week ending Monday, bringing total stockpiles to 486,200 tons, based on data from Mysteel Global cited by Bloomberg.

The firm said manufacturers increased their purchases after a rise in new orders, which boosted consumption.

Copper prices have declined about 12% this month on the London Metal Exchange, amid concerns that the conflict in the Middle East could drive inflation higher and slow global growth.

Demand also received additional support from restocking activity following the Lunar New Year holiday in late February, according to the report.

Yan Yuhao, a senior analyst at Zhejiang Hailiang, said the company had tripled its daily purchases of refined copper compared to last year’s average after domestic prices fell below 100,000 yuan per ton.

He added that many copper rod producers have full orders through next month and are considering operating above designed capacity.

Treatment charges for copper rods also increased last week, driven by stronger demand, according to Mysteel data.

In a related context, Ivanhoe Mines CEO Robert Friedland warned in remarks to the Financial Times that copper production in Africa could face significant disruptions if the Iran conflict continues for more than three weeks, due to the continent’s heavy reliance on sulfur supplies from the Middle East.

On the other hand, the dollar index fell by 0.7% to 98.9 points as of 15:04 GMT, after hitting a high of 100.1 points and a low of 98.8 points.

In US trading, copper futures for May delivery rose 2.4% to $5.50 per pound as of 14:57 GMT.

Bitcoin rose on Monday, recovering from losses recorded during Asian trading after US President Donald Trump announced that Washington would delay planned attacks on Iranian energy facilities.

The world’s largest cryptocurrency climbed 4.1% to $71,060 as of 07:34 AM Eastern Time (11:34 GMT), after falling earlier in the session to $67,363.

However, Iran’s Fars News Agency cited a source saying there were no direct or indirect contacts with the United States, noting that Washington’s decision to delay the strikes came after an Iranian warning to target energy infrastructure in West Asia in response to any attack.

Delaying strikes boosts risk appetite

Cryptocurrency prices rose after Trump signaled a possible de-escalation in military plans, stating in a post on Truth Social that both sides had held “very good and productive talks” aimed at reaching a “comprehensive and final resolution” to tensions in the Middle East.

He added that attacks on Iranian infrastructure would be postponed for five days.

However, Fars denied any communication with Washington, confirming that the decision to delay came after Iran threatened to retaliate against any targeting of energy facilities in the region.

Before Trump’s remarks, Bitcoin had been trading lower amid a broad decline in risk assets such as equities and currencies, as well as gold.

Trump had given Iran a 48-hour deadline to reopen the Strait of Hormuz to shipping, threatening to strike critical energy facilities if it failed to comply, while Tehran responded by threatening to close the strait entirely and target energy and water facilities in Gulf countries.

Bitcoin outperforms gold

Bitcoin has shown relatively stronger performance compared to gold and other precious metals over the past month despite geopolitical tensions.

Bitcoin rose about 9% during the month, while spot gold declined around 12% as of Monday.

Gold came under selling pressure following a wave of profit-taking after reaching record levels in late January, while position unwinding also weighed on prices.

Despite the outbreak of war with Iran, gold did not see strong safe-haven demand, as concerns over rising inflation and interest rates outweighed its appeal.

In contrast, Bitcoin benefited from some positive regulatory developments in the United States in recent weeks, in addition to renewed interest from investors seeking lower-priced opportunities after its previous sharp decline.

Altcoins recover

Alongside Bitcoin’s gains, other cryptocurrencies also recovered, with Ethereum rising 4.5% to $2,172.92, while Ripple gained 2.8% to $1.42.

Oil prices fell more than 13% on Monday after US President Donald Trump announced that he would order the military to delay any strikes targeting electricity plants and energy infrastructure in Iran.

Brent crude futures dropped by about $17, or 15%, to hit an intraday low of $96 per barrel, while US West Texas Intermediate crude declined by about $13, or around 13.5%, to a low of $85.28.

Trump had warned that Iranian power plants would be destroyed if Tehran did not fully reopen the Strait of Hormuz to all shipping traffic within 48 hours, setting a deadline that expired on Monday evening.

His remarks triggered threats of retaliation from Iran’s Revolutionary Guard, which said it would target power stations in Israel and those supplying US bases in the Gulf region if Trump carried out his threat to “destroy” Iran’s energy network.

The war has caused significant damage to key energy facilities in the Gulf and has led to a near halt in shipping through the Strait of Hormuz, which accounts for about 20% of global oil and liquefied natural gas flows.

Analysts estimated that oil production losses in the Middle East range between 7 million and 10 million barrels per day as a result of these disruptions.

Silver prices fell more than 10% in European trading on Monday, deepening losses for the fifth consecutive day and hitting their lowest level in three months, amid heavy selling as investors continue to exit precious metals markets, under pressure from the rise of the US dollar in the foreign exchange market.

Escalating tensions between the United States and Iran over the Strait of Hormuz have pushed global oil prices higher again, fueling concerns about accelerating inflation across most parts of the world and strongly boosting expectations of global interest rate hikes.

Price Overview

Silver prices today: silver fell 10.2% to $61.01, the lowest level since December 12, from the session opening level of $67.88, after reaching a high of $69.61.

At Friday’s settlement, silver lost 6.8%, marking its fourth consecutive daily loss.

The white metal, silver, declined 15.75% last week, recording its third consecutive weekly loss and its largest weekly drop since late January, due to global inflation concerns.

Precious metals markets

The decline in silver, traditionally considered a major safe-haven asset during periods of market turmoil, comes amid continued risk aversion in precious metals markets, as the Iran conflict fuels concerns over inflation and rising energy prices.

US dollar

The dollar index rose 0.5% on Monday, extending gains for the second consecutive session, reflecting the continued strength of the US currency against a basket of global currencies.

The rally comes as investors focus on buying the dollar as a preferred safe-haven asset amid the escalation of the war in the Middle East, especially after US President Donald Trump threatened to strike Iran’s electricity grid if Tehran does not reopen the Strait of Hormuz, while Iran’s Revolutionary Guard pledged to respond by targeting infrastructure in neighboring Gulf countries.

Israel announced launching large-scale strikes on Iran, while Saudi Arabia reported that the Iranian military fired two ballistic missiles toward Riyadh.

Global oil prices

Global oil prices rose on Monday at the start of the week’s trading, extending gains that began late last week, due to the escalation of the military conflict around the Strait of Hormuz and disruptions to supplies from the Gulf region.

Fatih Birol, Executive Director of the International Energy Agency, warned that the current crisis poses a serious threat to the global economy and is worse than the energy crisis that occurred in the Middle East during the 1970s.

US interest rates

The Federal Reserve kept US interest rates unchanged last week for the second consecutive meeting and warned about the risks stemming from the Iran war.

Following the meeting, and according to the CME FedWatch tool, markets reduced pricing for the probability of keeping interest rates unchanged at the April meeting from 99% to 95%, while the probability of a 25-basis-point rate hike increased from 1% to 5%.

To reassess these expectations, investors are closely monitoring further economic data releases from the United States, in addition to tracking comments from Federal Reserve officials.