By Hongmei Li
SINGAPORE, June 25 (Reuters) - 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 CMCU3 was up 0.18% at $9,686 per metric ton, as of 0101 GMT, while the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 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 U.S. 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 U.S. 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, U.S. airstrikes did not destroy Iran's nuclear capability and only set it back by a few months, according to a preliminary U.S. intelligence assessment.
The dollar weakened even after Powell said in testimony before the U.S. 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.
A softer U.S. currency makes dollar-priced metals more attractive for buyers using other currencies. FRX/
LME aluminium CMAL3 extended losses for a second consecutive day, down 0.52% at $2,565.5 a ton, and SHFE aluminium SAFcv1 eased for the fifth day, down 0.34% at 20,260 yuan.
LME zinc CMZN3 gained 0.26% to $2,688.5, lead CMPB3 grew 0.15% to $2,022, and nickel CMNI3 inched up 0.1% to $14,935.
SHFE lead SPBcv1 rose 0.95% to 17,090 yuan, nickel SNIcv1 gained 0.42% to 117,720 yuan, while tin SSNcv1 slipped 0.36% to 262,240 yuan.
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(Reporting by Hongmei Li; Editing by Sherry Jacob-Phillips)
((hongmei.li@thomsonreuters.com;))
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