May 14 (Reuters) - Copper fell on Thursday as investors

took profits after several days of gains, while a firmer dollar

and sticky U.S. inflation continued to weigh.

The benchmark three-month copper on the London Metal

Exchange tumbled 1.3% to $13,968.50 a metric ton as of 0258 GMT.

The contract hit $14,196.50 on Wednesday, while the January

all-time peak was $14,527.50.

The most-active copper contract on the Shanghai

Futures Exchange declined 0.88% to 107,160 yuan ($15,790.17) a

ton.

London copper has had an eight-day rally, and the Shanghai

copper contract has risen for six consecutive sessions. Copper's

gains were supported by concerns over mine supply, tight

inventories and strong demand from power grids, electrification

and artificial intelligence-related infrastructure, especially

from China.

However, traders say the recent run-up had left the market

vulnerable to profit-taking, especially after

higher-than-expected U.S. inflation data strengthened the dollar

and reduced expectations for near-term Federal Reserve rate

cuts.

The market needs fresh catalysts for further gains, traders

said.

A stronger dollar makes greenback-priced metals more

expensive for holders of other currencies, while

higher-for-longer interest rates can weigh on demand for

industrial commodities.

The market is also watching closely how the Trump-Xi meeting

starting on Thursday plays out.

Meanwhile, nickel declined. The Shanghai most-traded nickel

contract declined 0.78% to 145,010 yuan a ton, and the

benchmark nickel in London lost 1.26% to $18,935.

The China Chamber of Commerce in Indonesia have recently

warned that tighter ore quotas, a revised benchmark pricing

formula and heavier taxes are pushing up costs and threatening

future investment in the world's biggest nickel producer,

according to a letter to President Prabowo Subianto and seen by

Reuters.

Zinc was the sole metal posting gains on both the London and

Shanghai bourses. The London zinc gained 0.78% and the

Shanghai contract rose 0.42%.

A fire broke out on Wednesday at Nexa Resources' ( NEXA )

Cajamarquilla zinc smelter in Peru, though was later brought

under control.

Among other metals on the LME, aluminium declined

0.62%, lead dipped 0.22%, and tin slid 2.40%.

Elsewhere on SHFE, aluminium dipped 0.12%, lead

added 0.18% and tin lost 0.97%.

Thursday, May 14

DATA/EVENTS (GMT)

0600 UK GDP Est 3M/3M, MM, YY Mar

0600 UK Services MM, YY Mar

0600 UK GDP Prelim QQ, YY Q1

0600 UK Manufacturing Output MM Mar

1230 US Import Prices YY Apr

1230 US Initial Jobless Clm May 9 w/e

1230 US Retail Sales MM Apr

($1 = 6.7865 Chinese yuan renminbi)

(Reporting by Dylan Duan and Lewis Jackson; Editing by Mrigank

Dhaniwala)