METALS-London copper edges higher on soft dollar, but tariff jitters cap gains

NEW DELHI, May 22 (Reuters) - Copper prices in London edged higher on Thursday, supported by a softer dollar, although gains were limited due to persisting uncertainty over economic growth from elevated U.S. tariffs.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 0.1% at $9,546 a metric ton, as of 0224 GMT.

The dollar weakened against a broad swathe of currencies on Wednesday, pressured by concerns over the Trump administration's tax cuts and spending plans. A softer dollar makes greenback-priced commodities less expensive for buyers holding other currencies. USD/

Last week, the U.S. and China agreed to reduce tit-for-tat tariffs and implement a 90-day pause on actions but there is still uncertainty on what will follow after the temporary truce.

"The copper market faces a split trajectory due to the looming U.S. 25% import tariff, creating stark regional imbalances," consultancy BigMint said.

"Global prices (LME: $9,500/ton) are caught between rising U.S. stockpiles and tightening supplies elsewhere."

Among other London metals, aluminium CMAL3 was up 0.5% at $2,484 a ton, zinc CMZN3 dipped 0.1% to $2,690, lead CMPB3 eased 0.4% to $1,965.5 and nickel CMNI3 was down 0.08% to $15,590. Tin CMSN3 eased 0.5% to $32,700.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) eased 0.2% to 77,960 yuan ($10,830.03) per ton.

SHFE aluminium SAFcv1 was up 0.3% at 20,230 yuan a ton, zinc SZNcv1 eased 0.6% to 22,450 yuan, lead SPBcv1 was down 0.7% to 16,765 yuan, nickel SNIcv1 edged 0.01% lower to 123,350 yuan, and tin SSNcv1 fell 0.8% to 265,050 yuan.

($1 = 7.1985 yuan )

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