METALS-London metals ease as dollar firms, Middle East tensions escalate

By Brijesh Patel

June 17 (Reuters) - Prices of most base metals in London slipped on Tuesday as a stronger U.S. dollar and escalating tensions between Israel and Iran dampened investor appetite.

Three-month copper on the London Metal Exchange CMCU3 was down 0.1% to $9,697 per metric ton, as of 0735 GMT.

LME aluminium CMAL3 was up 0.2% to $2,517.50 a ton, zinc CMZN3 fell 0.1% to $2,653.50, lead CMPB3 was down 0.8% to $1,990.50 and nickel CMNI3 shed 0.5% to $15,000. Tin CMSN3 was down 0.2% to $32,550.

A Singapore-based metals trader said the Israel-Iran conflict was causing investors to stay away from risk on Tuesday morning and pushing metals lower.

Israel and Iran attacked each other for a fifth straight day on Tuesday, and U.S. President Donald Trump urged Iranians to evacuate Tehran, citing what he said was the country's rejection of a deal to curb nuclear weapons development.

U.S. stock futures slipped and oil prices climbed. MKTS/GLOB

The dollar index .DXY rose 0.2% against its rivals. A firmer dollar makes greenback-priced commodities more expensive for buyers using other currencies. =USD

Offering some respite, better-than-expected retail sales data from China on Monday raised hopes of a boost to metals demand in the country.

"Elevated US copper imports can continue to exacerbate ex-US physical (supply) tightness and support prices around $10,000/t. We are medium-term copper bulls and see an eventual S232 unwind as a good medium-term dip-buying opportunity," analysts at Citi said in a note.

The SHFE most-traded copper contract SCFcv1 gained 0.3% to 78,570 yuan ($10,938.02) per metric ton.

SHFE aluminium SAFcv1 was up 0.3% at 20,460 yuan a ton, lead SPBcv1 slipped 0.4% to 16,860 yuan, nickel SNIcv1 fell 0.9% to 118,570 yuan, while zinc SZNcv1 gained 0.5% to 21,905 yuan and tin SSNcv1 fell 0.3% to 263,730 yuan.

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