Copper edges higher as dollar dips, investors assess Trump's ceasefire extension

Copper prices edged up on Wednesday, as the dollar eased following U.S. President Donald Trump's indefinite ceasefire extension with Iran that offered cautious optimism to investors. The benchmark three-month copper on the London Metal Exchange gained 0.64% to $13,318 a metric ton, as of 0712 GMT. The most-active copper contract on the Shanghai Futures Exchange (SHFE) closed daytime trading up 0.29% at 102,640 yuan ($15,049.19) a ton. The U.S. dollar index eased from a one-week high hit on Tuesday. A weaker dollar makes greenback-denominated commodities cheaper for investors using other currencies. Doubts surrounding the Middle East peace process persisted as it was unclear whether Iran or Israel would agree to the ceasefire, while the Strait of Hormuz remained effectively shut. Oil prices too were elevated, with Brent futures hovering below $100 a barrel. In the U.S., the Senate confirmation hearing for Kevin Warsh, Trump's pick for Federal Reserve chair, was also in focus. Warsh, at the hearing on Tuesday, said he made no promises to Trump to cut interest rates. Higher U.S. interest rates pressure commodity prices, including copper, by lifting the dollar. Goldman Sachs, meanwhile, kept its outlook for the 2026 copper price, averaging $12,650 a ton while maintaining a surplus forecast. The bank flagged risks to production due to a sulphuric acid shortage. Elsewhere, nickel rose after the SHFE opened its nickel futures and options trading to overseas investors from Tuesday evening. The most-active nickel contract gained 0.53% to close at 141,540 yuan a ton, while the benchmark London nickel gained 0.80% to $18,370. Among other LME metals, aluminium gained 0.46%, zinc dropped 0.32%, lead shed 0.20% and tin gained 1.16%. On SHFE, aluminium gained 0.24%, zinc rose 0.35%, lead lost 0.65% and tin dropped 0.24%.