Freeport-McMoRan, Anglo American and Alcoa were among metal and mining stocks flashing buy signals or close to it on Tuesday morning on hopes for a sustainable end to the U.S.-Iran conflict.

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The prospect of free-flowing oil through the Strait of Hormuz eased inflation worries, lowering interest rates and the dollar while boosting the global growth outlook. That's a positive combination for economically sensitive copper price and that of other industrial metals.

nGold, Silver And Copper Pricesn

Although the U.S. dollar index slipped 0.8% early Tuesday vs. foreign currencies and the 10-year Treasury yield slid eight basis points to 4.49%, metals prices were mixed, though there were some standouts.

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The aluminum futures price rose 1.1%, zinc 1.25%, palladium 2.5% and platinum 0.85%. Meanwhile, the copper price dipped 0.4%, gold 0.3% and silver 0.1%.

nSupply-Demand Backdropn

Reduced aluminum production amid smelter outages in Middle East has lowered inventories. That should have an ongoing positive impact on prices, UBS analyst Daniel Major wrote in a Friday note, according to The Fly investment news site. UBS upgraded Alcoa to buy from neutral, while raising its AA stock price target to 80 from 75.

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Freeport-McMoRan said last month that copper output at its massive Grasberg mine in Indonesia would recover a bit more slowly than previously expected following last fall's fatal mud rush incident. That was among a series of industrywide output disappointments that has tightened up supply amid healthy demand growth. Barclays gave FCX stock a 77 price target and overweight rating last week, naming it one of its three favorite mining stocks.

nFCX And Other Mining Stocks To Watchn

FCX stock rose 2.3% to 63.43 early Tuesday, after slipping close to its 50-day moving average on Friday. A convincing move above the 50-day line would flash an early entry opportunity. Freeport-McMoRan's jagged consolidation also could offer a 68.85 buy point, if it clears the May 13 high.

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Anglo American, which is in the process of buying Teck Resources to form a copper giant, wasn't yet active, but shares closed at 26.16 on Friday, slightly above a 25.51 cup-with-handle buy point, according to MarketSurge. Teck rose 1.7% to 63.71, rising with a buy zone above a 62.41 cup-with-handle buy point.

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The United States Copper Index Fund dipped 0.2% to 38.85, set to remain within a buy zone above a 37.66 cup-with-handle buy point.

nnHow To Read Stock Chartsnn

Diversified mining giants BHP Group and Rio Tinto both climbed near the top of a buy range. Rio, which is part of the IBD Leaderboard portfolio of elite stocks, rose 2.1% to 106.40. The buy zone from a 100.42 cup-with-handle buy point runs through 105.44. BHP rose 1.4% to 85.81, just clear of a buy zone from a cup-with-handle base that runs to 85.32.

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Alcoa rose 2% to 72.81, nearing a 75.70 buy point from a cup base. On Friday, AA stock surged 7.7%, flashing an early entry on the move clear of its 50-day line. Century Aluminum rose 0.7% to 65.51, following Friday's 7.6% surge. Today's premarket move positioned the stock to clear a 65.34 early entry. CENX has a 68.89 buy point from a six-week consolidation.

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Hudbay Minerals, which gets the bulk of its revenue from copper and gold, rose 4.4% to 25.47, flashing an early entry on the move clear of its 21-day exponential average. HBM has a 26.39 buy point from a cup-with-handle base.

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Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.

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