METALS-London copper rises on softer dollar, but Middle East tensions cap gains

By Michele Pek

SINGAPORE, June 18 (Reuters) - London copper edged higher on Wednesday, supported by a softer dollar, although heightened tensions in the Middle East dampened global risk appetite and kept a lid on metal prices.

Three-month copper on the London Metal Exchange CMCU3 was up 0.46% at $9,713 per metric ton, as of 0712 GMT.

LME aluminium CMAL3 eased 0.02% to $2,550 a ton, zinc CMZN3 inched 0.55% higher to $2,653, lead CMPB3 strengthened 0.18% to $1,979.5 and nickel CMNI3 edged 0.24% higher to $14,960. Tin CMSN3 climbed 1.11% to $32,625.

The U.S. dollar wavered against most major currencies on Wednesday, with the dollar index =USD slipping 0.1% on the day. USD/

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

"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 0.42% to 78,860 yuan ($10,976.10) per metric ton.

SHFE aluminium SAFcv1 was up 1.35% at 20,680 yuan a ton, lead SPBcv1 slipped 0.68% to 16,810 yuan, nickel SNIcv1 fell 0.42% to 118,480 yuan, while zinc SZNcv1 gained 0.85% to 22,060 yuan and tin SSNcv1 inched up 0.28% to 265,010 yuan.

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($1 = 7.1847 Chinese yuan)

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