Copper prices declined in the international market as escalating geopolitical tensions in the Middle East and concerns over expanded US tariffs dampened investor sentiment and triggered risk-off behavior across global markets.
On the London Metal Exchange (LME), copper fell 0.9% to $9,611 per ton, registering a 0.9% drop for the week. Similarly, copper on the Shanghai Futures Exchange (SHFE) declined 0.9% to 78,010 yuan per ton, down 0.5% on a weekly basis.
The premium of US COMEX copper futures over LME copper stood at $946 per ton, Reuters reported.
On the domestic front, MCX copper futures were trading 0.39% lower at ₹871.45 per kg.
The drop in copper prices followed Israel’s airstrikes on Iran targeting its nuclear facilities, prompting swift retaliation from Tehran through drone attacks. The escalation raised fears of a prolonged conflict in the region, heightening global economic uncertainty and weighing on investor confidence.
Adding to the bearish sentiment, copper prices came under further pressure after the US announced an expansion of import tariffs on a range of home appliances, which will include steel components, effective from June 23.
Other Metal Prices
Other base metals also witnessed mixed performance. LME zinc price dropped 1.3% to $2,609.50 per ton, LME lead prices declined 0.2% to $1,993, while LME nickel price slipped 0.2% to $15,120, and tin edged down 0.2% to $32,590.
In contrast, SHFE lead rose 0.3% to 16,945 yuan per ton. However, zinc fell 1.1% to 21,815 yuan, nickel declined 0.5% to 119,920 yuan, and tin dropped 0.4% to 263,690 yuan per ton.
LME aluminium price, which had risen since June 9, eased 0.6% to $2,502.5 a ton. The SHFE most-traded aluminium contract gained for the third straight day, up 0.5% at 20,440 yuan per metric ton ($2,846.28), Reuters reported.
Meanwhile, gold prices rallied to near two-month high on increased safe-haven demand amid heightened geopolitical tensions.
Spot gold price was up 1% at $3,417.59 an ounce, after hitting its highest point since April 22 earlier in the session. Bullion has gained more than 3.2% so far this week. US gold futures gained 1% to $3,438.00. MCX gold rate hit record high, surpassing the ₹1 lakh-mark.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
