June 14 (Bloomberg) -- Copper rose for a fifth day in New York and London, heading for its longest rally in more than five months, as a weaker dollar spurred demand for commodities as an alternative investment. The U.S. Dollar Index, a six-currency gauge of the greenback's strength, fell as much as 1.3 percent after sliding last week. The MSCI World Index of shares gained for a fifth day. Raw materials from crude oil to wheat advanced. Copper, which last week dropped to the lowest intraday price since Oct. 5, also climbed as stockpiles of metal shrank further. "Friendly equity markets, a weaker dollar, some optimism and bargain-hunting" lifted metals, Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt, said by phone. Futures for July delivery rose 8.7 cents, or 3 percent, to $2.991 a pound at 8:20 a.m. on the Comex in New York. The current streak of gains for the most-active contract matches a five-day run that ended on Jan. 6. Copper for delivery in three months advanced 2.5 percent to $6,642 a metric ton on the London Metal Exchange. The market in China, the world's biggest copper consumer, is closed until Thursday as the nation celebrates the Dragon Boat holidays. Today's gain for copper cut this year's drop to 10 percent. The dollar index's 11 percent advance in 2010 has pulled prices down, along with concern about steps by China to restrain its economic growth and the potential spread in the euro zone of Greece's fiscal crisis. A stronger dollar makes metals priced in the currency more expensive in terms of other monies. Consumer Confidence LME copper rose 3.2 percent last week, the most since April, helped by a report on June 11 showing that Americans are gaining confidence in the economy even as Europe's debt crisis roils investors. The Thomson Reuters/University of Michigan index of consumer sentiment rose to 75.5, beating the median forecast of 65 economists polled by Bloomberg News. Euro-zone industrial production increased more than economists forecast in April, European Union statistics showed today. Output rose 0.8 percent from March, more than the 0.5 percent median of 33 estimates in a Bloomberg survey showed. Production jumped 9.5 percent from a year earlier, the most since the data started in 1991. Inventories of copper tracked by the LME slipped for a 19th day today to 463,175 tons, the lowest level since Dec. 10. Bookings to remove metal from warehouses jumped 17 percent to 29,175 tons, the most since April 28. Nickel for three-month delivery on the LME rose 1.7 percent to $19,872 a ton. Chinese makers of nickel pig iron, a cheaper substitute for refined metal, have started to idle capacity as prices and demand weaken amid curbs on property development, according to a state-owned researcher. Nickel Pig Iron Production of nickel pig iron dropped to between 14,000 and 15,000 tons in April from a record 17,000 tons in March, said Xu Aidong, senior nickel analyst at Beijing Antaike Information Development Co. The analyst predicted further declines in May and this month. China is the world's biggest consumer of nickel, used mostly to make stainless steel. When trading closed on June 11, LME nickel had slumped 29 percent from a 23-month high of $27,595 a ton on April 16. Aluminum gained 1.6 percent to $1,976 a ton. LME-monitored stockpiles of the lightweight metal fell for a 16th day to 4.5 million tons. Metal booked for delivery from warehouses rose to 327,425 tons, the most since at least 1997. Tin rose 2.7 percent to $17,000 a ton. Outbound shipments from Indonesia, the world's largest exporter, fell to 7,332.5 tons in May from 7,926.5 tons a month earlier, according to data released by the trade ministry. Zinc climbed 2.5 percent to $1,783 a ton and lead added 1.9 percent to $1,701 a ton. --With assistance from Glenys Sim in Singapore, Simone Meier in Zurich and Yoga Rusmana in Jakarta. Editors: Dan Weeks, M. Shankar.

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