METALS-Copper gains on oil price drop as US, Iran pause strikes
XLB•Other base metals mostly mixed
Among other LME metals, aluminium CMAL3 was down 0.03%, zinc CMZN3 gained 0.6%, lead CMPB3 ticked 0.11% higher, nickel CMNI3 slipped 0.31% and tin CMSN3 gained 1.16%.
Elsewhere on SHFE, aluminium SAFcv1 slipped 0.11%, zinc SZNcv1 added 0.46%, lead SPBcv1 lost 0.79%, nickel SNIcv1 ticked 0.09% higher and tin SSNcv1 rose 2.17%.
Copper firms as oil falls and inflation fears ease
Copper prices firmed on Monday, as oil prices fell after the U.S. and Iran paused their nearly two-week-long fighting, easing concerns over inflationary risks to global economic growth.
Benchmark three-month copper CMCU3 on the London Metal Exchange gained 0.32% at $13,688.5 a metric ton by 0700 GMT. The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 was up 0.31% at 105,050 yuan ($15,523.64) a ton.
The U.S. said it was pausing its airstrikes on Iran after 13 consecutive nights of attacks, while Tehran said it would halt its attacks.
Brent crude LCOc1 fell more than 6% on Monday after topping $100 a barrel for the first time since May last week on Friday.
Expensive energy raises inflation risk and tends to generate bets on higher interest rates, which could weigh on growth-dependent commodities like copper by dampening economic activity.
Fed meeting, dollar move and stock levels support prices
The market will be closely watching Wednesday's U.S. Federal Reserve meeting for its interest-rate decision.
Interest-rate traders are pricing in a 63.7% chance there will be no rate change at the meeting, according to the CME's FedWatch tool.
Non-yielding gold XAU= gained, and the dollar index .DXY edged lower. A cheaper dollar makes greenback-traded commodities like copper more affordable for buyers using other currencies.
