Base metals continued the upside momentum, supported by the decline in the dollar and release of an index of leading economic indicators which suggested that the U.S. recession was drawing to a close.

Copper prices rose by almost 2 percent to hit nine-month highs on LME on Monday, leading a broad rally in commodities. Zinc turned out to be winner on MCX by gaining 3 percent.

IN FOCUS:

World refined copper consumption exceeded production by 37,000 tonnes between January and April this year, versus a deficit of 147,000 tonnes in the same year-ago period, the International Copper Study Group (ICSG) said.

Japan's Mitsubishi Materials Corp and BHP Billiton Ltd , the world's largest diversified miner, have set the copper processing fee for the mid-year contract more than 30 percent lower than calendar 2009, a company official said on Tuesday.

The New York-based Conference Board said its index of leading economic indicators rose for a third straight month in June, exceeding expectations and suggesting that moderate economic recovery was possible by autumn.

FUNDAMENTAL OUTLOOK:
Base metals: Despite positive data, markets could not manage to hold on to its previous gains and showed some weakness.Prices may not be able to hold on to its gain. The trend for the day is sideways to down.