Market Overview and Price Movements
On August 7, 2025, zinc futures experienced a notable increase, supported by optimism surrounding potential interest rate reductions. The London Metal Exchange (LME) zinc prices extended their three-day upward trend, with support from the 40-day moving average and narrowing bearish signals on the MACD indicator. Positive remarks from U.S. Federal Reserve officials about the possibility of a rate cut dampened the U.S. dollar index, leading to a rally in non-ferrous metals.
Overnight Trading Highlights
During the overnight session, LME zinc opened at $2,752 per metric ton, briefly dipped to $2,743.5, then gained momentum, reaching a high of $2,803.5 before settling at $2,795, up by $45 or 1.64%. Trading volume increased alongside open interest. In the Shanghai Futures Exchange (SHFE), the zinc 2509 contract opened at 22,480 yuan/mt, peaked at 22,595 yuan/mt, and closed slightly higher at 22,475 yuan/mt.
Market Fundamentals and Geopolitical Developments
Market fundamentals showed active trading amid macroeconomic developments. U.S.-Russia talks were described as productive, and Federal Reserve officials signale...