(Updates prices)

SINGAPORE, June 26 (Reuters) - Copper fell on the London

Metal Exchange on Friday and was on track to post a weekly loss

as macroeconomic headwinds outweighed dip buying.

Benchmark three-month copper on the LME fell 0.78%

to $13,167 a metric ton by 0700 GMT.

The most-traded copper contract on the Shanghai Futures

Exchange was supported by bargain-buying, edging up

0.21% to 101,560 yuan ($14,930.24) a ton.

The red metal was poised to end the week down more than 3%

on the LME and just under 3% on the SHFE.

Lower Shanghai copper prices brought some buying interest

back to the market on Thursday, providing support, Chinese

broker Jinrui Futures, a subsidiary of copper producer Jiangxi

Copper, wrote in a note.

The U.S. dollar surrendered gains earlier in the day

to decline 0.01%. It nonetheless remains high, up 0.5% since the

start of the week, weighing on greenback-denominated metal

markets by making them more expensive for buyers using other

currencies.

Elsewhere, economic headwinds from the war in the Middle

East helped push a key U.S. inflation indicator to its highest

level in three years in May. Inflation and higher interest rate

expectations have weighed on growth-dependent industrial

minerals.

Aluminium was largely stable, taking into stride jitters in

this week's tentative Middle East peace after a cargo ship was

hit by a projectile in the Strait of Hormuz.

On the LME, it was flat, and on the SHFE,

it edged up 0.11%. Prices for the light metal have fallen 7% on

the LME since the start of the week as the Middle East risk

premium receded.

Among other LME metals, zinc lost 0.63%, lead

dipped 0.24%, nickel dipped 0.17% and tin

dipped 0.06%.

Elsewhere on SHFE, zinc dipped 0.27%, lead

added 0.31%, nickel lost 0.57% and tin gained

0.57%.

($1 = 6.8023 Chinese yuan)