London copper on track for best week in over a year

MELBOURNE, Feb 16 (Reuters) – London copper climbed in thin trade on Friday and was on track for its strongest weekly gain in more than a year, backed by resilient global manufacturing growth and a persistently weak dollar. FUNDAMENTALS: * COPPER: London Metal Exchange copper had risen by 0.5 percent to $7,214 a tonne by 0715 GMT, after small gains in the previous session. Prices were on track for a 6.8-percent weekly rise, the biggest such rally since November, 2016. Prices hit four-year highs at $7,312.50 a tonne in late January. * VOLUMES: Turnover was extremely light with a less than 3000 lots among the major benchmark contracts amid a week-long holiday in top metals user China. * LUNAR NEW YEAR: The Shanghai Futures Exchange was closed for a second day and will reopen on Thursday, Feb. 22. Singapore, Hong Kong, Malaysia, Indonesia, the Philippines and Vietnam were also closed on Friday for a public holiday. * GOLD: Gold was set for its biggest weekly gain in nearly two years. * DOLLAR: The dollar slipped to a three-year low against a basket of currencies on Friday, headed for its biggest weekly loss in two years, as bearish factors offset support the U.S. currency could take from rising Treasury yields. The U.S. currency has been weighed down by a variety of factors this year, including concerns that Washington might pursue a weak dollar strategy and the perceived erosion of its yield advantage as other countries start to scale back their easier monetary policy. A weaker dollar benefits commodities by making them more affordable for buyers paying with other currencies. * US ECONOMY: U.S. producer prices accelerated in January, boosted by strong gains in the cost of gasoline and healthcare, offering more evidence that inflation pressures were building up. Economists were also unfazed by an unexpected dip in industrial production last month, citing strong business sentiment surveys. * MARKETS: Asian shares extended their recovery from two-month lows into a fifth day on Friday as the Wall Street market volatility gauge fell, while the U.S. dollar was undermined by various worries including rising inflation.