NEW DELHI, Dec 14 (Reuters) - Copper prices edged up on Wednesday as the U.S. dollar weakened, although a possible surge in COVID-19 infections in Beijing posed short-term risks and kept gains in check.
Three-month copper on the London Metal Exchange was up 0.29% at $8,522 a tonne by 0700 GMT, after having hit its highest since June 23, at $8,629, in the previous trading session.
The most-traded January copper contract on the Shanghai Futures Exchange was up 0.91% at 66,510 yuan ($9,557.96) a tonne.
The dollar weakened after data showed U.S. consumer price inflation rose less than expected last month, strengthening the view that the Federal Reserve will slow its pace of rate hikes after its two-day meeting on Wednesday.
"(A) weakening USD is another tailwind at the moment," said Soni Kumari, a commodity strategist at ANZ Research.
Meanwhile, a week after China began dismantling its tough zero-COVID controls, the World Health Organization warned of "very tough" times ahead and state media reported on seriously ill patients at hospitals in Beijing, raising fears of a wave of infections.
"We remain cautious as this surprised reopening during winter could lead to rapid spread of infections through households and offices," Kumari said, adding that this remained a short-term risk for recovery in industrial activity.
"Falling copper spot premium still suggests weaker demand."
In Peru, the world's No. 2 copper producer, armed forces will take control of the "protection" of key infrastructure, its defense minister said, as protests raged across the country following the ousting of its former president.
Among other metals, LME aluminium was down 0.10% at $2,458.50 a tonne, while zinc was down 0.11% at $3,315, and lead weakened 0.95% to $2,184.50.
SHFE aluminium rose 0.53% to 18,800 yuan a tonne, tin climbed 0.43% to 195,020 yuan, zinc dipped 0.28% to 24,815 yuan, nickel fell 1.32% to 219,700 yuan, while lead was down 0.54% at 15,530 yuan.
For the top stories in metals and other news, click or ($1 = 6.9586 Chinese yuan renminbi) (Reporting by Neha Arora; Editing by Savio D'Souza, Uttaresh.V and Vinay Dwivedi)
