* Strong support for copper at $6,150-$6,160
* Premium for zinc cash over 3-month at 21-year high (Updates with closing prices)By Pratima DesaiLONDON, Nov 21 (Reuters) - Copper prices rose on Wednesdayas a lower dollar and higher equities triggered fund buying, butworries about the U.S.-China trade dispute and about demandgrowth in top consumer China are expected to cap gains.Benchmark copper on the London Metal Exchange ended0.8 percent higher at $6,235 a tonne. The price of the metal,used widely in the power and construction industries, hit atwo-week high of $6,296 on Tuesday."The weaker dollar and the stock market recovery aresupporting factors," a commodity-focused fund manager said."Fears about global growth due to the trade dispute will bea negative for all assets that rely on growth."
TRADE: Worries about trade were further reinforced after theU.S. said China has failed to alter its "unfair" practices,ahead of a meeting next week between U.S. President Donald Trumpand Chinese President Xi Jinping. DOLLAR: A fall in the dollar, which makes dollar-pricedcommodities cheaper for holders of other currencies, was helpingindustrial metals. The relationship is used by funds known ascommodity trading advisors (CTAs) which trade using buy and sellsignals from numerical models.POSITIONS: Traders are keeping a close eye on positionsholding large amounts of LME copper warrants and cash contracts,which is fuelling nervousness about nearby availability.This can be seen in the premium for the copper cash andthree-month contract, now around $22 a tonne .CHINA: The country accounts for nearly half of globaldemand, which is estimated at around 24 million tonnes thisyear."Fundamentals are little changed, amid steady demand andsomewhat sluggish supply, resulting in a broadly balancedmarket," Barclays analysts said in a note. "We forecast China toslow but not collapse and this to lead to lower rates of demandgrowth from a very large absolute base."BALANCE: A recent Reuters survey showed the copper marketwas expected to see a small surplus of 13,500 tonnes this yearand a small deficit of 44,000 tonnes in 2019. TECHNICALS: Strong support for copper comes in at$6,150-$6,160, near the 21-, 55- and 100-day moving averages.ZINC: The premium for the zinc cash contract over thethree-month contract hit a 21-year high of $97 a tonnedue to falling stocks in LME-registered warehouses on Tuesday.It was trading around $94 on Wednesday. At 123,275 tonnes, stocks have more than halved since Aug.13. The three-month zinc price closed 0.7 percent higherat $2,568 a tonne.
PRICES: Aluminium rose 0.7 percent to $1,953.5, lead added 2.3 percent to $2,006 and tin slipped 0.8percent to $19,240. Nickel fell 0.7 percent to $11,020after hitting an 11-month low at $11,010 during the session.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima Desai; editing by David Evans, JaneMerriman and Kevin Liffey)