SINGAPORE — Copper prices on the London Metal Exchange and the Shanghai Futures Exchange edged higher on Wednesday, supported by a softer dollar and improved risk sentiment amid a tentative ceasefire between Iran and Israel.
Three-month copper on the London Metal Exchange was up 0.18 percent at $9,686 per metric ton, while the most-traded copper contract on the Shanghai Futures Exchange held steady at 78,480 yuan ($10,945.45) a ton.
The shaky truce has so far held, although Israel says it will respond forcefully to Iranian missile strikes that came after US President Donald Trump had announced an end to the hostilities.
“Traders and investors are waiting for some definite signals amid all the uncertainty, the Israel-Iran ceasefire may not be final, and US Federal Reserve Chair Jerome Powell’s remarks on the interest rate cut have been neutral in tone,” a Beijing-based metals analyst from a futures company said on condition of anonymity.
In addition, US airstrikes did not destroy Iran’s nuclear capability and only set it back by a few months, according to a preliminary US intelligence assessment.
The dollar weakened even after Powell said in testimony before the US Congress that he and many at the Fed expect inflation to start accelerating soon, and that the central bank was currently in no rush to ease borrowing costs.
