METALS-London metals inch up on dollar weakness, Middle East tensions cap gains

By Michele Pek

SINGAPORE, June 18 (Reuters) - London base metal prices inched up on Wednesday on a softer U.S. dollar, although tensions in the Middle East dampened global risk appetite and kept a lid on prices.

Three-month copper on the London Metal Exchange CMCU3 was up 0.22% at $9,690.5 per metric ton by 0326 GMT.

LME aluminium CMAL3 gained 0.18% to $2,555 a ton, zinc CMZN3 ticked up 0.49 to $2,651.5, lead CMPB3 strengthened 0.23% to $1,980.5 and nickel CMNI3 inched 0.27% higher to $14,965. Tin CMSN3 climbed 0.73% to $32,500.

The dollar index .DXY was last a touch weaker, losing 0.13%.

A weaker dollar makes dollar-denominated assets more affordable to holders of other currencies.

"Base metals remained under pressure amid a broader risk off tone across markets," said ANZ analysts.

Concerns over escalating hostilities in the Middle East stayed front and centre in markets on Wednesday, sending oil prices higher. Higher oil prices dampen economic growth and stoke inflationary pressures. MKTS/GLOB

Meanwhile, recent data showed the U.S. economy was slowing amid President Donald Trump's shifting tariff policies, with retail sales falling more than expected in May.

The SHFE most-traded copper contract SCFcv1 gained 0.14% to 78,640 yuan ($10,943.50) per metric ton.

SHFE aluminium SAFcv1 was up 1.45% at 20,700 yuan a ton, lead SPBcv1 slipped 0.62% to 16,820 yuan, nickel SNIcv1 fell 0.49% to 118,400 yuan, while zinc SZNcv1 gained 0.87% to 22,065 yuan and tin SSNcv1 inched up 0.08% to 264,480 yuan.

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($1 = 7.1860 yuan)

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