U.S. Copper Closes up; Mixed Data Pares Early Gains

NEW YORK, Sept 16 (Reuters) -

U.S. copper futures closed
higher on Thursday, buoyed by a weaker dollar and chart-based
buying that pushed prices up against a recent four-month top,
but mixed labor and manufacturing data sapped a portion of the
earlier momentum.
 
Copper for December delivery HGZ0 climbed 2.70 cents,
or 0.78 percent, to end at $3.4935 per lb on the COMEX metals
division of the New York Mercantile Exchange.

Range from $3.4435 to $3.5170, just below last week's
four-month peak at $3.5345.

COMEX estimated final copper futures volume at 25,691
lots, up a bit from Wednesday's count at 22,807 lots. IZQI
Open interest eased 5 lots at 141,023 contracts as of
Sept. 15.

Copper building a wedge formation, with Sept. 9, low at
$3.3930 and Sept. 3, and Sept. 7, double-top at $3.5345 still
in place - Scott Meyers, senior trading analyst with Pioneer
Futures in New York.

Copper up to an area where "the air is getting thin".
Further upside dependent on positive macro economic data -
Donald Selkin, chief market strategist with National Securities
Corp. In New York.

New U.S. claims for jobless benefits hit a two-month low
last week, hinting at some stability in the labor market, while
factory activity in Mid-Atlantic region fell for a second
straight month in September.Copper supported by weak U.S. dollar, which tends to make
dollar-priced metals more attractive to buy for non-U.S.
investors. [USD/]

London Metal Exchange (LME) copper warehouse stocks
dropped 2,350 tonnes to 387,150 tonnes, their lowest level
since November. Stocks have fallen more than 150,000 tonnes
since mid-February.

COMEX copper warehouse stocks fell by 675 short tons to
90,849 short tons as of Wednesday.
LME copper CMCU3 closed up $80 at $7,700 per tonne.