* Goldman sees copper at $5,200/T by Oct, at $4,800 in Jan
* Euro climbs above $1.10 for first time in a week
* Coming Up: euro zone July consumer confidence, 1400 GMT (Adds quotes, detail; previous MELBOURNE)
By Eric Onstad
LONDON, July 23 (Reuters) - Copper edged higher on Thursday, gaining support from a weaker dollar and as shorts bought back positions, though gains were muted by persistent concern about global demand and oversupply.
Three-month copper on the London Metal Exchange climbed 0.3 percent to $5,377 a tonne by 1000 GMT, having earlier slid to $5,311, its weakest since July 8. That is the day copper hit its lowest since 2009 at $5,240 a tonne.
“The strength of the dollar yesterday was clearly undermining a lot of commodities and the bounce we are seeing in the euro this morning has at least given a little bid to metals,” said Nic Brown, head of commodities research at Natixis in London.
The euro jumped above $1.10 for the first time in a week, making commodities priced in dollars cheaper for consumers in Europe.
Copper and other metals, however, are likely to experience further losses in the short term once key support levels have been broken, including $5,400 in copper, Brown added.
“Sentiment is horrific when all you’re doing is waiting for support levels to break, but at some stage all this negative momentum must run in to fatigue.”
Prices slipped earlier in the session after Goldman Sachs cut its outlook for copper because of slower Chinese demand growth and higher supplies. It forecast prices to drop to $4,500 a tonne by the end of 2016.
Other analysts said the Goldman call might be overdone.
“It’s not that bad at all. On the China property side, sales have been better, and that translates into better demand growth. But technically, short-term, it’s not looking good,” said Dominic Schnider, analyst at UBS Wealth Management in Hong Kong.
Copper was also supported by news from Chile that prompted short speculators to buy copper to cancel their positions, a Singapore trader said. Top Chilean copper miner Codelco said on Wednesday that one of its projects had been suspended by a strike, but added that most of its operations were unaffected.
Also supporting gains, shares on the Shanghai stock market closed 2.4 percent higher, helped by liquidity measures by China’s banks.
In other metals, LME nickel dropped 0.9 percent to $11,375 a tonne, reversing a rally earlier in the week.
Industry sources told Reuters that China’s commodity stockpiler is likely to buy refined nickel as it takes advantage of lower prices, but the global price impact is likely to be subdued given ample world supplies.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
$1 = 6.2084 Chinese yuan Additional reporting by Melanie Burton in Melbourne; Editing by David Goodman