Copper ticks higher as Iran headlines keep traders cautious

Copper is set to post a weekly gain on Friday, as investors weighed shifting headlines around U.S.-Iran peace talks. Three-month copper on the London Metal Exchange rose 0.80% to $13,623.50 a metric ton by 0736 GMT. The most-traded copper contract on the Shanghai Futures Exchange was little changed, ticking 0.04% higher to close the week at 104,770 yuan ($15,415.06) a ton. For the week, LME copper rose 0.76% so far, while the Shanghai copper closed 0.15% higher, with traders saying they were reluctant to take strong directional bets as geopolitical headlines continued to drive moves across oil, currencies and bond markets. Oil prices rose on Friday, as investors weighed whether U.S.-Iran peace negotiations would deliver a quick breakthrough even as key disagreements remained. Brent crude was still trading above $100 a barrel, keeping inflation concerns alive. Disruptions in the strait have tightened energy flows and lifted concerns that higher oil prices could keep global interest rates elevated for longer. Those concerns have supported the dollar, which hovered near a six-week high, making greenback-priced metals more expensive for buyers using other currencies. Meanwhile, investors are also watching top consumer China, where demand is expected to taper as the country enters an off-season. "As the market enters the seasonal lull, downstream consumption has weakened, and cargo pick-up has slowed," said analysts at Chinese broker Galaxy Futures in a note. Copper stocks monitored by the Shanghai exchange increased 1.6%, according to the exchange's weekly stock report on Friday, the first increase since March 13. Elsewhere on the LME, aluminium added 0.77%, zinc rose 1.14%, lead ticked 0.22% higher, nickel gained 0.31% and tin climbed 1.78%. Among other SHFE metals, aluminium ticked 0.12% lower, zinc was down 0.10%, lead rose 0.42%, nickel dropped 0.73% and tin added 0.40%.