Base Metals Up; Copper, Aluminum Gain

NEW YORK （TheStreet） -- Base metals were rising early Thursday with the dollar index relatively unchanged. Higher initial jobless claims in the U.S. and the ongoing decline in pending-home sales could pressure the dollar and trigger buying interest across the metals complex.

Copper

Copper for three-month delivery was up 1% for the second consecutive day to $8,670 per metric tonne on the London Metal Exchange, supported by improved U.S. vehicle sales numbers and China's strong manufacturing data. The net decline in inventories was 900 tonnes, touching 52-week lows for the third consecutive day to close at 354,850 tonnes. The metal faces support at $8,432 and resistance at $8,749.

The United States Commodity Fund is looking to launch a United States Metal Index Fund, including both base and precious metals, and will track 10 metals -- aluminum, copper, zinc, nickel, tin, lead, platinum, palladium, silver, and gold.

Southern Copper（SCCO） closed at $43.14 Wednesday, finding support at $42.53 and resistance at $43.67. Freeport-McMoRan Copper & Gold（FCX） closed at $105.49, with support and resistance at $103.84 and $106.36, respectively. Teck Resources （TCK） closed at $51.5, with support at $50.8 and resistance at $51.99.

Aluminum

Aluminum for three-month delivery notched up 0.9% to $2,361 per tonne. Inventories added 625 tonnes to close at 4.29 million tonnes. The metal faces support and resistance at $2,302 and $2,394, respectively.

Alcoa（AA） closed at $13.57 Wednesday, finding support and resistance at $13.39 and $13.66, respectively. Century Aluminum（CENX） closed at $14.19, with support at $14.05 and resistance at $14.32. Kaiser Aluminum（KALU） closed at $48.75, finding support at $48.18 and resistance at $49.23.

Nickel

Nickel for three-month delivery rose 0.2% to $23,590 per tonne. Inventories were up 936 tonnes to 131,802 tonnes. Nickel finds support at $23,130 and resistance at $23,969.

Until mid-November, nickel prices rose almost 15% on the LME, the highest compared to any other base metal, Commodity Online reports. This could lead to a marginal surplus situation in 2011 and a roughly balanced market this year. By 2013, however, the market is likely to head toward a significant oversupply situation.

Zinc

Zinc for three-month delivery gained 1.6% to $2,194 per tonne. Inventories declined 400 tonnes to 631,425 tonnes.The metal faces support and resistance at $2,130 and $2,209, respectively.