LONDON - Gold rose above $950 (U.S.) an ounce in Europe on Friday and eyed resistance at $955, after heavy selling of the dollar late in the previous session, with rising oil prices also lending support.

Oil meanwhile climbed above $73 an ounce, boosted by Thursday's better-than-expected U.S. GDP and jobs data, which has fuelled interest in assets seen as higher risks, such as equities and commodities.

Base metals also climbed, with copper up more than 3 per cent, helping fellow industrial metal silver, which rose to $14.47 an ounce from $14.24.

Copper hits 11-month high on recovery buying


* Copper ends month strong after reaching 11-month peaks

* Copper leads base metals higher on demand expectations

* Lead gains to one year high as China supply doubts linger


NEW YORK/LONDON, Aug 28 (Reuters) - Copper climbed to an
11-month high, buoyed by improving economic and demand expectations,
and maintained strong levels into the close on Friday, as many
players settled their books for the month.

London metal markets will be closed on Monday for Britain's
summer bank holiday. Traders said many players sought to finish
outstanding business for August ahead of weekend.


Copper for three month delivery on the London Metal
Exchange closed up at $6,475 a tonne from $6,275 at the close on
Thursday, having earlier hit $6,549 -- its highest since Sept. 29
last year.

In after-hours business, London copper rose to $6,510.

Benchmark copper for December delivery settled 7.85
cents, or 2.73 percent, higher at $2.9505 a lb on the New York
Mercantile Exchange's COMEX division. Earlier, it reached $2.9895, a
peak last seen on Sept. 26.

While some analysts warned that weak fundamentals and rising
inventories could lead to price corrections next week, others saw
the lofty month-end levels as a signal for further gains while the
London market is closed.

Data showing U.S. consumer spending rose in July initially
thrust copper to 11-month highs, by boosting optimism that the U.S.
economy is gradually emerging from recession.

Prices of the red metal, used in power and construction, have
more than doubled this year on a combination of Chinese stockpiling,
speculative buying and an improved macro picture.


Aluminium closed at $1,900 from $1,884. LME inventories in the
metal, used in transport and packaging, gained 625 tonnes to remain
at record levels above 4.6 million tonnes.

Steel making ingredient nickel was untraded at the close
but was last bid at $19,030 from $18,755 while battery material lead
closed at $2,107 from $2,010.

Tension and unrest are growing in China as a lead poisoning
scandal engulfs a growing number of provinces, threatening further
cuts in supply from the world's top producer of the metal.
[ID:nSP416885]

"The China story is still bubbling away, but strength in the
rest of the complex is also influential," said Citigroup analyst
David Thurtell.

Zinc closed at $1,881 a tonne from $1,831 and tin
closed at $14,100 from $13,995.

Tin LME stocks rose 140 tonnes to 19,765 tonnes -- its highest
since July 2003, while zinc inventories are at their highest level
since late 2005 at 434,600 tonnes.

24 Hour Base Metals