* China raises reserve requirements in bid to curb inflation * Move could herald further China rate * Oil, gold, base metals higher; corn lower By Christopher Johnson LONDON, Nov 19 (Reuters) - Oil, gold and industrial metals were slightly firmer on Friday, supported by a weaker dollar and talk of a multi-billion euro deal for Ireland, but some other commodities fell on news of tighter Chinese monetary policy. China's central bank said on Friday it would raise banks' reserve requirements for the second time in two weeks, stepping up its battle against inflation in a move that could limit future Chinese consumption. With inflation running at a 25-month high, raising interest rates or taking measures to cap domestic prices could constrain commodity demand or drain liquidity from markets. After a brief blip, oil, precious metals and copper all moved higher following the Chinese move, buoyed by a weaker dollar against the euro. Many traders had feared an immediate rate rise and analysts said a gentle tightening of Chinese monetary policy could be good for commodities as a whole. "Anything that acts a gentle brake on the runaway growth in China will be a very good thing in the longer term," said Christopher Bellew at Bache Commodities in London. "And if it causes commodity prices to fall, it will only be the short term. In the longer term, China will be the reason for the next rally." Foodstuffs are likely to be hardest hit, highlighting Beijing's focus on consumer inflation. Corn, cotton and zinc -- favoured by speculators in recent months -- saw some of the biggest falls with U.S. cotton down around 4 percent. Chicago Board of Trade December delivery corn lost 0.55 percent to $5.38-3/4 per bushel, while January soy fell 0.5 percent to $12.35-1/2 a bushel. For the week, Dec wheat has lost more than 3 percent, January soybeans are down more than 2.5 percent, while corn has gained half a percent. U.S. crude for December delivery, which expires after Friday's settlement, was up 10 cents at $81.95 a barrel, after rising as high as $82.75 earlier. Oil, which settled up $1.75 on Thursday, remains well below a 25-month high of $88.63 hit on Nov. 11, but recovered after hitting a four-week low of $80.06 on Wednesday amid concerns about the euro zone's fiscal health. IRELAND DEAL PROSPECTS The euro held on to its recent gains on Friday on hopes Ireland is near a deal to shore up its banks and budget deficit, although the currency stopped short of breaking above major resistance. Ireland's central bank chief said he expected the country to receive tens of billions of euros in loans from European partners and the IMF to help its troubled banks and stabilise the economy. Three-month copper on the London Metal Exchange traded at $8,497 a tonne by 1103 GMT from $8,425 a tonne at the close on Thursday, when it jumped nearly 3 percent. Earlier this week, the metal used in power and construction slumped more than 5 percent in the biggest one-day loss in six months. "Risk aversion is declining a little for now and that helps commodities in general on a broad basis," said Daniel Briesemann, analyst at Commerzbank. "Some consider the latest price drop as excessive and took this as an attractive buying opportunity, and that helps today as well." In precious metals, gold built on gains from the previous session with spot bullion little changed around $1,355 an ounce, on course for a 0.8-percent weekly decline. "I think a rate hike ... is likely to exert a bit of volatility for commodities, including precious metals," said Yingxi Yu, an analyst at Barclays Capital. "But fundamentally it doesn't change our views that China will continue to grow at a robust pace. It doesn't change our view that fundamental demand for commodities from China is not going to be severely affected by a rate hike." (Additional reporting by Nicholas Trevethan in Singapore; editing by Anthony Barker)

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