Copper holds firm, US-Iran fighting weighs on sentiment
XLB•Copper holds firm as dollar eases
LONDON, July 13 (Reuters) - Copper prices held firm on Monday as the dollar eased, but gains were capped as fighting between the U.S. and Iran escalated and oil prices jumped, reinforcing fears for growth and inflationary pressures.
Benchmark copper CMCU3 on the London Metal Exchange traded 0.1% higher at $13,501 a metric ton in official rings.
A lower U.S. currency makes dollar-priced metals cheaper for holders of other currencies, which could boost demand.
Other London Metal Exchange moves
Aluminium CMAL3 rose 0.2% to $3,145, zinc CMZN3 retreated 1.5% to $3,563, lead CMPB3 fell 1.2% to $1,874, tin CMSN3 gained 0.1% to $53,200 and nickel was down 1% to $16,575.
Attention turns to Fed and U.S. inflation data
Markets are looking ahead to Kevin Warsh's debut appearance before Congress as Federal Reserve chair and U.S. inflation data for clues to dollar direction.
Geopolitical tensions and falling inventories support prices
Oil prices surged after renewed military strikes between the United States and Iran reignited concerns over energy shipments through the Strait of Hormuz.
Focus was also on falling copper inventories. Copper stocks in LME-approved warehouses have dropped more than 20% since the end of May to a four-month low of 305,200 tons.
Cancelled warrants or metal earmarked for delivery at nearly 43% indicate another 130,525 tons is due to leave the LME system.
Industry sources say much of this copper is heading for the United States where U.S. President Donald Trump is considering tariffs on the metal used in the power and construction industries.
