(Rewrites, adds analyst comments and updates prices)
By Ashitha Shivaprasad
June 19 (Reuters) - Copper prices touched a near
one-week low on Thursday and most other base metals also
slipped, dragged down by a strong dollar and mounting global
growth fears amid escalating tensions between Israel and Iran.
The LME's three-month copper was down 0.5% at $9,608
per metric ton, as of 0852 GMT, its lowest level since June 13.
"A stronger U.S. dollar on higher on geopolitical concerns
tends to weaken U.S. dollar-based prices. Long-only funds are
sitting on the sidelines due to elevated risk concerns," said SP
Angel analyst John Meyer.
The pullback also reflects reduced activity as U.S. traders
are away for the Juneteenth holiday on Thursday, he added.
The dollar firmed, buoyed by rising Middle East tensions and
as Federal Reserve Chair Jerome Powell's cautionary tone on
inflation, and oil prices jumped.
Israel struck a key Iranian nuclear site and Iranian
missiles hit an Israeli hospital, as U.S. President Donald Trump
kept the world guessing about whether the U.S. would join Israel
in air strikes seeking to destroy Tehran's nuclear facilities.
War, elevated oil prices and inflation tend to disrupt
supply chains, increase costs, and dampen investment-slowing
global growth.
LME copper inventories dropped by 4,025 tons
to 103,325 tons, data for Wednesday showed. This marked the
weakest level in more than a year.
In recent months, copper has been flowing to the United
States, where it attracts a premium due to expectations Trump
will impose tariffs on the metal.
LME aluminium fell 1.2% to $2,515.5.
Meanwhile, premiums for consumers buying aluminium on the
physical market in the United States fell more than 7%
on Wednesday as traders speculated that U.S. import tariffs on
shipments from Canada could be cut, metal industry sources said.
LME tin lost 0.4% to $32,240, zinc shed 0.4%
to $2,625.5, lead inched 0.2% lower to $1,988.5., while
nickel gained 0.6% at $15,140.
International Lead and Zinc Study Group on Wednesday said
the global zinc market surplus narrowed in April while lead
market swung to surplus.