METALS-Copper extends gains after Fed holds rates steady

* Fed holds benchmark rates in zero to 0.25 pct range

* Dollar dip provides support; demand doubts linger

* Dominant tin position resurfaces (Recasts, updates prices, market activity to after-hours trading; new byline, changes dateline, previously LONDON)

By Chris Kelly

NEW YORK, Nov 4 (Reuters) - Copper prices extended gains in after-hours business on Wednesday as the dollar slid further against the euro after the U.S. Federal Reserve pledged to hold interest rates near zero percent for an "extended" period.

"I think a lot of people were maybe looking for the Fed to change that 'extended' wording, but they are still going to stick with low rates for an extended period of time and I think that will continue to place downward pressure on the dollar and upward pressure on both precious and industrial metals," said Zachary Oxman, managing director with TrendMax Futures in Encinitas, California.

The Fed kept its benchmark federal funds rate unchanged in a range of zero to 0.25 percent, as expected, and said the economy has "continued to pick up" since its last policy meeting in September. For details, see [ID:nN04453484]

Copper for December delivery HGZ9 on the New York Mercantile Exchange's COMEX division ended up 3.70 cents at $2.9930 a lb. After hours, the metal used in power and construction rose past the $3.00 per lb level following the Fed decision.

On the London Metal Exchange (LME), benchmark copper MCU3 closed up $110 at $6,570 a tonne, and extended its gains as well in electronic business to above $6,600.

"No real change in policy or Fed thinking .... It's really steady as she goes well into next year," said Frank Lesh, broker and futures analyst with Future Path Trading in Chicago. "The dollar is down, as should be, with no real indications at all at when they might tighten policy."

A weaker American currency makes dollar-priced commodities cheaper for holders of other currencies. [USD/]

Attention will turn on Friday toward monthly U.S. employment data. Forecasts call for the unemployment rate to edge up to 9.9 percent in October from 9.8 percent in September; non-farm payrolls are expected to fall by 175,000 in October after a decline of 263,000 in September.

SUPPLY-SIDE SUPPORT

This week industrial metals have been helped by strong surveys of manufacturing in the United States and China, the world's largest consumer of industrial metals. [ID:nSP62642]

Greater manufacturing activity coupled with increased threats to the supply chain should result in higher consumption levels in 2009, analysts said.

"It appears that copper, nickel and lead will have up consumption in 2009, world-wide," said John Tumazos with VeryIndependentResearch.com.