London copper rises on softer dollar, but Middle East tensions cap gains

London copper edged higher on Wednesday, supported by a softer dollar, although heightened tensions in the Middle East dampened global risk appetite and kept a lid on metal prices. Three-month copper on the London Metal Exchange was up 0.46% at $9,713 per metric ton, as of 0712 GMT.

LME aluminium eased 0.02% to $2,550 a ton, zinc inched 0.55% higher to $2,653, lead strengthened 0.18% to $1,979.5 and nickel edged 0.24% higher to $14,960. Tin climbed 1.11% to $32,625.

The U.S. dollar wavered against most major currencies on Wednesday, with the dollar index slipping 0.1% on the day. A weaker dollar makes dollar-denominated assets more affordable to holders of other currencies.

"Base metals remained under pressure amid a broader risk off tone across markets," said ANZ analysts.

Concerns over escalating hostilities in the Middle East stayed front and centre in markets on Wednesday, sending oil prices higher. Higher oil prices dampen economic growth and stoke inflationary pressures.

Meanwhile, recent data showed the U.S. economy was slowing amid President Donald Trump's shifting tariff policies, with retail sales falling more than expected in May.

The SHFE most-traded copper contract gained 0.42% to 78,860 yuan ($10,976.10) per metric ton.

SHFE aluminium was up 1.35% at 20,680 yuan a ton, lead slipped 0.68% to 16,810 yuan, nickel fell 0.42% to 118,480 yuan, while zinc gained 0.85% to 22,060 yuan and tin inched up 0.28% to 265,010 yuan.