Base metals witnessed a sharp gain on Tuesday on the back of falling dollar and growing hopes for recovery in the global economy.

Copper surged by over 3 percent, ending the day at an 8-month high on Tuesday while Aluminum rose by around 2.5 percent, hitting a 6-month peak on signs of stronger demand.

Data last week showed U. S. manufacturing shrank at a slower-than-expected rate in May, while in China, the world's thirdbiggest economy, industrial activity expanded in the month.

Xstrata PLC has indefinitely suspended operations at its Montcalm nickel mine in Timmins, Ontario, after finding structural damage, the company said on Tuesday.

Base metals saw a smart rally yesterday. Despite slack demand season, metals are moving up as hopes of economic recovery are leading to restocking of metals. Weaker dollar also seems to be adding up fuel to bullish sentiments in industrial metal. We recommend remaining long in base metals during the day.