Zinc prices climbed to their highest level in more than five years on Thursday, supported by a weaker dollar and buying from computer-driven speculative funds that also helped copper to a three-month high.
More reports on FBI investigations into US presidential candidate Hillary Clinton helped to send the dollar index lower, reflecting a weakening that makes dollar-priced commodities cheaper for buyers using other currencies.
Benchmark zinc on the London Metal Exchange closed at $2,487 a tonne, up 2.5 percent, having earlier touched $2,494, its highest since August 2011.
"The algos are chasing the short-term constructive charts, but volumes are very low," said Gianclaudio Torlizzi, of Milan consultancy T-Commodity, referring to the algorithmic computer programmes that many speculative funds use to make buy and sell decisions, often based on technical signals such as momentum.
Zinc is a top LME performer this year with gains of more than 50 percent. It has been boosted by supply concerns after Glencore shuttered its Black Star mine in Australia and by a report that forecast a 2017 deficit.
On Thursday, however, a Glencore report showed third-quarter zinc production up 13 percent from the previous quarter - the first quarterly increase since the group announced sweeping mine suspensions.
Among other metals, LME copper gained 0.8 percent to $4,958 a tonne, having touched its highest since July 22 at $4,965.50.
Torlizzi said he has gone short on copper with a target of $4,400 on the view that its rally would soon run out of steam.
"For the fourth day in a row, copper has seen strong forward selling by producers. The earlier squeeze in copper is almost over and it is vulnerable," he said.
Also possibly capping gains in copper were reports of weak physical demand.
Copper consumption by Arc Resources' end-user clients in China was poor this year, and next year could be even worse, the trading company's chief executive told Reuters.
Nickel rose 1.5 percent to close at $10,480 while aluminium firmed 0.3 percent to $1,731.
Tin finished with a 1.6 percent gain at $21,105 from an earlier $21,200, its highest since September 2014. Lead was up 1.8 percent at $2,092.
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