Copper Hits One-Week Low on Middle East Tensions
Copper Prices Fall Amid Middle East Tensions
Copper prices hit a one-week low on Thursday as renewed tensions in the Middle East pushed the dollar and oil prices higher, fueling inflation and slowdown concerns. Three-month copper on the London Metal Exchange (LME) edged down 0.1% to $13,514.50 per metric ton.
US Military Strikes Impact Markets
The US military conducted new strikes targeting an Iranian drone operation in the Strait of Hormuz, escalating geopolitical risks. The US dollar index climbed to a near one-week high, making greenback-priced commodities more expensive for other currency holders. Independent metals trader Tai Wong noted, "Dollar at highs and an impasse in Hormuz that saw US attacks isn't helping sentiment."
Copper Stocks and Other Metals
Depletion of available copper stocks in LME warehouses continued, while COMEX copper stocks saw further inflows. Other base metals also declined: aluminium fell 0.5%, zinc 0.2%, lead 0.4%, nickel 0.8%, and tin 0.1%. Similar trends were observed on the Shanghai Futures Exchange.
Impacted Symbols
Symbols affected by this headline and their sentiment signals
LME tin edged 0.1% lower, limited impact but trending down due to overall negative sentiment.
LME copper price directly declined and demand outlook weakened due to geopolitical risks.
Shanghai copper contract fell 1.1% to a one-week low, pressured by geopolitical tensions and a strong dollar.
U.S. Dollar Currency Index
The dollar index neared a one-week high due to geopolitical uncertainty and safe-haven demand.
LME zinc fell 0.2% to a two-week low, affected by broad metal sell-off.
Copper (XCUUSD)
Copper prices are the direct subject of the news, with demand concerns rising due to geopolitical tensions.
LME aluminium fell 0.5% to its lowest since May 21, impacted by energy costs and demand concerns.
LME lead fell 0.4% to a one-week low, pressured by weak demand outlook.
LME nickel fell 0.8%, under selling pressure along with other metals.
Shanghai aluminium fell 1.1%, negatively impacted by geopolitical risks and energy costs.
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