Feb 29 (Reuters) - U.S. copper futures rallied on Wednesday after the European Central Bank offered banks 530 billion euros of cheap money and after the U.S. reported a faster-than-forecast 3.0 percent fourth quarter growth pace, while gold slipped with the euro following the liquidity addition. FUNDAMENTALS * Copper prices rallied to a more than two-week high after banks snapped up more than 500 billion euros in cheap funding from the European Central Bank, helping risky assets push higher. * Three-month copper on the London Metal Exchange was $8,638 a tonne at 1318 GMT, up 0.4 percent from a close of $8,600 a tonne on Tuesday. A session peak at $8,695.25 was its highest level since Feb. 10. * U.S. copper futures for May delivery jumped 2.65 cents to $3.9480. * Banks took 530 billion euros at the European Central Bank's second offering of three-year funds, slightly above forecasts, fuelling hopes that more credit will flow to businesses and government borrowing costs will ease further. * Gold eased, reversing a brief move higher after the European Central Bank fed cash-hungry commercial banks over half a trillion euros in cheap loans, further greasing the wheels of the financial system, but depressing the euro's value. * Spot gold edged up 0.1 percent on the day to $1,785.46 an ounce, bringing the gains for February to 2.6 percent, which would mark a second monthly gain. * Continued failure of the price to breach $1,800 an ounce could prompt some investors to book profits, analysts said. * U.S. gold futures for April delivery fell by $5.70 cents an ounce to $1,782.70. ECONOMY * U.S. preliminary GDP for Q4 grew by 3.0 percent, faster than forecasts of up 2.8 percent. * The U.S. economy's growth pace quickened in the fourth quarter on slightly firmer consumer and business spending, which could help to allay fears of a sharp slowdown in growth in early 2012. * February Chicago PMI due at 945 a.m. EST. Index expected to rise to 61.5. * Federal Reserve's Beige Book due at 2:00 p.m. EST (1900 GMT). MARKETS * The U.S. dollar and the euro pared losses against the yen on Wednesday after the release of stronger-than-expected U.S. economic expansion data for the fourth quarter. * Brent and U.S. crude futures initially extended gains on Wednesday after a report showed the U.S. economy grew at a slightly faster rate than initially thought in the fourth quarter.

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