Sept. 2 (Bloomberg) -- Copper prices, little changed in New York, may gain on better-than-expected U.S. housing and employment reports. Pending U.S. home sales unexpectedly increased, snapping two months of declines, an industry report showed. U.S. initial jobless claims fell by 6,000 to 472,000 in the week ended Aug. 28, the Labor Department said. The U.S. is the largest metals user after China. "The market is up a little on temporary, renewed economic optimism," said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. Copper futures for December delivery were down 0.1 cent to $3.4765 a pound at 11:40 a.m. on the Comex in New York. Earlier, the price reached $3.5045, the highest level for a most-active contract since April 27. "Prices will trade sideways between $3 and $3.60 in the foreseeable future, until the economic picture becomes clear," Zeman said. Yesterday, the price jumped 3.2 percent, as manufacturing data in the U.S. and China topped forecasts. The International Monetary Fund raised its economic growth estimate for South Korea to 6.1 percent from 5.75 percent previously, damping concern that a U.S. slowdown will hurt Asia. "With particular strength in other developing economies, the outlook for industrial growth remains good," said Nic Brown, an analyst at Natixis Commodity Markets Ltd. in London. "Our outlook is for a modest slowdown in China, while the U.S. should escape" another recession, he said. On the London Metal Exchange, copper for delivery in three months added $22.50, or 0.3 percent, to $7,628 a metric ton ($3.46 a pound). Zinc for three-month delivery gained 1.8 percent to $2,171 a ton. Earlier, the metal added as much as 2.9 percent to $2,194, the highest price since May 7. Aluminum, tin, lead and nickel also climbed. --With assistance from Courtney Schlisserman in Washington. Editors: Millie Munshi, Steve Stroth

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