(Recasts with updated prices, adds analyst comment and London

dateline)

By Polina Devitt

LONDON, Dec 23 (Reuters) - Copper prices edged higher in

London on Monday as they recovered to recent technical averages

from last week's fall, although dwindling pre-Christmas

liquidity kept them in a tight range.

Three-month copper on the London Metal Exchange (LME)

rose 0.4% to $8,977 per metric ton by 1103 GMT.

The metal, used in power and construction, lost 1.2% last

week as the dollar hit a two-year high, making metals

more attractive for buyers using other currencies.

Adding further pressure, the International Copper Study

Group said on Friday that the global refined copper market was

in a 287,000 metric ton surplus for the first 10 months of 2024.

With a mean reversion strategy in play, copper is likely to

strengthen back above the crucial $9,000 mark, analysts at

broker Sucden Financial said.

The U.S. dollar has appreciated nearly 7% this year,

creating significant headwinds for growth-dependent metals, but

most, with the exception of nickel and lead, posted gains.

Headwinds from the dollar may ease next year only to be

replaced by the prospect of U.S. President-elect Donald Trump

imposing import tariffs.

"The market appears to have already priced in moderate

tariffs, but there is a risk that extreme tariff measures could

undermine market confidence. China, the largest consumer of base

metals, may offset this potential headwind through strong

stimulus measures," said WisdomTree commodity strategist Nitesh

Shah.

"During its recent Politburo meeting, China indicated a

willingness to intensify stimulus efforts but has not yet

committed to a specific program, opting to keep its powder dry

until the scale of U.S. protectionism becomes clearer," Shah

added.

LME aluminium rose 0.4% to $2,545 a ton, zinc

climbed 1.7% to $3,022, lead gained 1.0% to

$2,000.50, tin added 1.1% to $28,950 and nickel

increased 0.8% to $15,475.