METALS-Copper plunges from record high as investors shift to risk-off positioning

Feb 2 (Reuters) - Copper plunged on Monday as investors moved into risk-off mode after Kevin Warsh was nominated the next Federal Reserve chair, while demand for the metal was also subdued in the run-up to China's Lunar New Year break.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 hit the lower price limit, slumping 9% to close daytime trading at 98,580 yuan ($14,183.56) a metric ton, the lowest since January 9.

Three other SHFE metals, aluminium SAFcv1, nickel SNIcv1 and tin SSNcv1, hit a limit down on Monday.

Shanghai aluminium declined 9% to close at 23,035 yuan a ton, while nickel and tin both plunged 11% to close at 129,650 yuan and 392,650 yuan, respectively.

The benchmark three-month copper on the London Metal Exchange CMCU3 tumbled 4.86% to $12,518 a ton as of 0700 GMT.

Copper is plummeting after it set record highs on both exchanges on Thursday, touching 114,160 yuan in Shanghai and $14,527.50 in London, supported by a speculative buying spree.

The decline is part of a broader selloff in metals led by gold XAU= and silver XAG= as investors unwind a record-setting speculative rally after U.S. President Donald Trump on Friday nominated Kevin Warsh as the next Fed chair, a former Fed governor seen as less likely to press for aggressive rate cuts.

Spot gold tumbled to $4,500 per ounce level, after it set a record near $5,600 level on Thursday.

The U.S. dollar =USD steadied, consolidating gains after strengthening following Warsh's appointment. A higher dollar weakens commodities priced in the greenback, as they become less affordable for investors using other currencies.

Alongside other industrial metals, copper also came under pressure as demand prospects weakened in the run-up to the 9-day Lunar New Year holiday starting February 15 in top consumer China, while the previous high prices also muted consumption.

The Yangshan copper premium SMM-CUYP-CN, a gauge of Chinese consumers' appetite for imported materials, rose to $27 a ton after a decline in copper prices, but is still low compared with above $40 entering January.

Elsewhere on SHFE, zinc SZNcv1 declined 6.86% and lead SPBcv1 dropped 2.31%.

Among other LME metals, aluminium CMAL3 dropped 4.58%, zinc CMZN3 shed 3.84%, lead CMPB3 dipped 2.41%, nickel CMNI3 lost 7.26% and tin CMSN3 lost 9.92%.

($1 = 6.9503 yuan)