Prices of metals in London dropped on Tuesday as a stronger US dollar and escalating tensions between Israel and Iran dampened investor appetite.
Three-month copper on the London Metal Exchange was down 0.3 percent at $9,677 per metric ton.
LME aluminium eased 0.2 percent to $2,508 a ton, zinc fell 0.4 percent to $2,646, lead was down 0.5 percent at $1,996.50 and nickel shed 0.4 percent to $15,005. Tin was down 0.3 percent at $32,505.
A Singapore-based metals trader said the Israel-Iran conflict was causing investors to stay away from risk this morning and pushing metals lower.
Israel and Iran attacked each other for a fifth straight day on Tuesday, and US President Donald Trump urged Iranians to evacuate Tehran, citing what he said was the country’s rejection of a deal to curb nuclear weapons development.
US stock futures slipped and oil prices climbed.
The dollar index rose 0.3 percent against its rivals. A firmer dollar makes greenback-priced commodities more expensive for buyers using other currencies.
Offering some respite, better-than-expected retail sales data from China on Monday raised hopes of a boost to metals demand in the country.
Meanwhile, the US intends to impose a quota on steel and aluminum imports from the United Kingdom that would be exempt from 25 percent tariffs, as part of a deal announced between the two countries during the G7 Summit on Monday.
