METALS-Copper gains with shares, weaker dollar supports

* Equities rise to boost market confidence

* U.S. retail sales jump but consumer confidence slumps

(Updates with closing prices)

By Michael Taylor and Rebekah Curtis

LONDON, July 14 (Reuters) - Copper scaled one-week highs on Tuesday, as the dollar weakened and gains in equities reflected a more upbeat mood on prospects for demand and economic growth.

Boosted by an improved economic sentiment and tracking the rallies in copper and equities, zinc, nickel and tin all rose at least 5 percent.

Benchmark copper MCU3 on the London Metal Exchange closed at $5,045 a tonne from $4,895 at the close on Monday.

The metal used in power and construction, up about 65 percent year-to-date, hit a session high of $5,080.50 in sympathy with a rally in European equities. [.EU]

"Metals are holding really well," said Andrey Kryuchenkov, analyst at London's VTB Capital. "Copper has a very good chance of holding above 4,600 this summer."

Market players are gaining confidence that the global economy is improving, but analysts warn broadly that it is too early to bet that a sure recovery has begun.

"If data doesn't deteriorate, copper is looking good," Kryuchenkov said, but added it was market sentiment, not real demand, driving prices. "The upside is very limited because there is no real fundamental demand at the moment."

A weaker U.S. currency gave support, making dollar-priced metals less expensive for holders of other currencies. [USD/]

Strong profits from U.S. bank Goldman Sachs and rising U.S. retail sales fanned market optimism [ID:nLE5905]. But downbeat numbers continue to temper the better data, with a survey showing U.S. consumer confidence slumped in July. [ID:nNYS005232]

The premium for cash copper versus the three-month contract was at around $5 a tonne. This is the first time there has been a premium since the beginning of May, suggesting tightness in the nearby market. [ID:nSP373804]

Copper stocks dipped 325 tonnes to 256,900 tonnes -- visiting levels last seen in November.