Copper prices dipped on Tuesday from near an eight-year high hit in the previous session, as concerns about growing U.S.-China political tensions weighed on sentiment.

Three-month copper on the London Metal Exchange fell 0.4pc to $7,680.50 a tonne by 0706 GMT, slipping from its highest since March 2013 of $7,800 hit on Monday.

The most-traded January copper contract on the Shanghai Futures Exchange declined 0.7pc to 56,930 yuan ($8,708.75) a tonne.

The United States on Monday imposed financial sanctions and a travel ban on 14 Chinese officials over their alleged role in Beijing's disqualification last month of elected opposition legislators in Hong Kong.

Copper is often used as the bellwether for the economy and souring tensions between the world's two biggest economies could worsen the global economic status.

"Rising geopolitics tension prompted investors to book some profits," said ANZ in a note.

Copper has been "on a tear in recent weeks as investors pile into base metals seeking exposure to the new energy sectors," which are expected to boost high valued metals' demand it added.

FUNDAMENTALS

LME aluminium fell 0.6pc to $2,006 a tonne. ShFE aluminium declined 1pc to 16,070 yuan a tonne, while ShFE nickel advanced 1.7pc to 121,490 yuan a tonne and ShFE lead jumped 2pc to 15,060 yuan a tonne.

Aluminium premiums paid by Japanese buyers could rise to $90-$135 a tonne next year on recovering demand, trading house Marubeni said.

U.S. President-elect Joe Biden's $2-trillion infrastructure plans could underpin metal prices in the coming months.

Japan will compile a fresh economic stimulus package worth 73.6 trillion yen ($707.01 billion), including direct spending of 40 trillion yen.

The U.S. Congress will vote this week on a one-week stopgap funding bill to provide more time for lawmakers to reach a COVID-19 relief deal.