METALS-Shanghai copper hits two-week high as dollar weakens

June 26 (Reuters) - Shanghai copper prices hit a two-week high on Thursday, aided by a weaker U.S. dollar that fell to its lowest level in over three years, and relief following the Israel-Iran ceasefire.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 was up 0.6% at 79,000 yuan ($11,022.74) per metric ton, its highest since June 11, as of 0702 GMT.

Three-month copper on the London Metal Exchange CMCU3 also added 0.6% to $9,774 a ton.

The dollar .DXY fell 0.3% to its lowest since March 2022 after a Wall Street Journal report said President Donald Trump has considered selecting and announcing U.S. Federal Reserve Chair Jerome Powell's replacement by September or October, raising concerns around the soundness of U.S. monetary policy.

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

On the geopolitical front, the "ceasefire between Iran and Israel has a positive feedback on copper prices," said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA.

Trump said on Wednesday he would likely seek a commitment from Tehran to end its nuclear ambitions at talks next week, and credited the U.S. strikes for bringing a swift end to the conflict between Israel and Iran.

Meanwhile, Goldman Sachs expects copper prices to rise in the second half of 2025 to an average of $9,890 per metric ton, the bank said in a note, citing fears of a global supply squeeze driven by U.S. tariffs and increased activity in China.

LME aluminium CMAL3 rose 0.3% to $2,572 a ton, lead CMPB3 gained 0.7% at $2,047, nickel CMNI3 firmed 1% to $15,220 a ton, zinc CMZN3 was up 1% at $2,730.5, while tin CMSN3 was steady at $33,200.

SHFE aluminium SAFcv1 rose 0.7% to 20,445 yuan a ton, zinc SZNcv1 gained 1.3% to 22,240 yuan, lead SPBcv1 rose 0.5% to 17,190 yuan, tin SSNcv1 fell 1.9% to 267,270 yuan and nickel SNIcv1 gained 2.3% to 120,700 yuan.

($1 = 7.1670 Chinese yuan )