Copper eases, heads for weekly dip as US-Iran peace talks postponed

(Adds comment, updates prices) June 19 (Reuters) - Copper fell for a second straight session on Friday, heading for a weekly loss after peace talks between the United States and Iran were postponed and the dollar struck a one-year high. Benchmark three-month copper on the London Metal Exchange was down 0.6% at $13,604 a metric ton as of 0915 GMT. Switzerland said U.S. talks with Iranian negotiators on a pact to end the Middle East conflict would not take place on Friday, while Vice President JD Vance dropped plans to travel there, fuelling uncertainty about whether a lasting truce can be found. The prior agreement of a peace pact had helped drive a four-day winning run for copper, but the metal is now on course to end the week 0.7% lower. The dollar index rose 0.3% to a one-year high after Vance's withdrawal. A stronger greenback makes dollar-denominated metals more expensive for holders of other currencies. Meanwhile, expectations for higher-for-longer U.S. interest rates rose after Federal Reserve Chair Kevin Warsh's first meeting. "A stronger dollar, renewed concern about tighter U.S. policy and fading confidence after repeated failures to hold above $13,800 ... are all making the market look heavier," Sucden Financial said of copper. "At the same time, the underlying structural support from tariff distortion and low visible inventories has not disappeared, which is why the move is still choppy," the brokerage added in a note. LME copper inventories of 352,150 tons are the lowest in almost three months, while Shanghai Futures Exchange copper stocks of 143,875 tons are the lowest since December after a 23.6% drop from last week. The Chinese bourse is closed on Friday for the Dragon Boat Festival. Aluminium was the sole gainer on the LME, rising 0.5% to $3,403.50 after receding earlier in the week as Gulf supply fears eased. Still, Goldman Sachs raised its average aluminium price forecast, assuming Middle East production will face a slower recovery. Nickel dipped 0.1% to $17,830, tin slid 0.5% to $53,085, zinc shed 0.8% to $3,607.50, and lead lost 0.9% to $1,966.50. (Reporting by Tom Daly; additional reporting by Solomon Cefai; Editing by Eileen Soreng, Jan Harvey and Ronojoy Mazumdar)