BEIJING- London copper steadied after an early dip, lifted by low inventories and tight supplies amid concerns about any impact from Iran’s strike on US forces, while a weaker dollar also supported prices.
Iran launched a missile attack on US-led forces in Iraq on Wednesday, hours after the funeral of an Iranian commander whose killing in a US drone strike has raised fears of a wider war in the region.
The base metals complex initially tracked equity markets lower as investors switched into safe-haven assets such as gold, but subsequently clawed back ground.
“So far the metals have reacted to the news … without too much drama,” Malcolm Freeman, director of Kingdom Futures, wrote in a note.
“But it is very much a case of the markets in general holding their metaphoric breath until we find out what, if any, response the (United States) will make,” he added. – Reuters