Copper prices surged on Thursday, along with other base metals such as nickel and zinc, as China regulators were said to consider a probe into metal short-selling in the local market.

Copper for March delivery on the Comex division of the New York Mercantile Exchange rallied 5.3 cents, or 2.59%, to trade at $2.102 a pound during morning hours in London. It earlier rose by as much as 3.93% to a session high of $2.133, the most since November 16.

Meanwhile, three-month copper on the London Metal Exchange spiked 2.73% to $4664.25 a metric ton.

Prices received another boost amid reports that Chinese smelters are planning a meeting to consider taking action against falling prices.

Copper is down more than 10% so far this month as expectations of higher interest rates in the U.S. and slower global economic growth, especially in China, weighed.

Elsewhere in metals trading, gold struggled near six-year lows on Thursday after U.S. economic data on Wednesday reinforced expectations for a Fed rate hike next month.

Gold futures are down more than 6% so far in November amid mounting expectations the Federal Reserve will raise rates for the first time in nearly a decade at its December 15-16 meeting.

Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

The U.S. dollar held near the highest level since April against a basket of six other major currencies, amid growing expectations for tighter monetary policy in the U.S. in the coming months.

Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

U.S. markets will be closed Thursday for the Thanksgiving holiday and Friday will be a half day, resulting in low liquidity and thin trade conditions.

Source:-Forexpros