LONDON, Dec 12 (Reuters) - Copper prices in London reversed earlier gains on Tuesday as a dollar decline slowed after U.S. inflation data, which offered more evidence that the Federal Reserve was unlikely to pivot to interest rate cuts early next year.

Three-month copper on the London Metal Exchange traded up 0.1% at $8,350.5 per metric ton by 1702 GMT after touching $8,395 earlier in the day.

The dollar cut some of the day's losses against a basket of currencies after the U.S. consumer price index edged up 0.1% last month after being unchanged in October.

Elevated rates and a supported dollar have been a drag on growth-dependent industrial metals in the past two years, said Ewa Manthey, ING's commodities strategist.

"The latest data release could reinforce the Fed's intent to keep interest rates higher in the near term," Manthey said.

"If U.S. interest rates stay higher for longer, this would lead to a stronger U.S. dollar and weaker investor sentiment. This in turn, would translate to weaker metals prices."

Investors are also closely watching for the 2024 economic targets and stimulus plans following the Chinese leaders' annual Central Economic Work Conference.

Top metals consumer China will focus on boosting effective demand next year, and make concerted efforts to expand domestic demand, state media said, citing the conference which ended on Tuesday.

"A further boost for China's property sector will be crucial in supporting demand (for metals) going forward," Manthey said.

On the supply side, recent mine closures and disruptions that have prompted analysts to lower their forecasts for surpluses support copper prices.

Aluminium rose 0.4% to $2,126 a ton while zinc added 1% to $2,432. Both metals hit their lowest since late August on Monday.

The discount for cash aluminium against the three-month contract reached its three-month high of $47 per ton at Monday's market close.

Lead was down 0.9% at $2,039, tin advanced 1.2% to $24,645 and nickel fell 0.5% to $16,520. (Reporting by Polina Devitt in London; additional reporting by Julian Luk and Mai Nguyen; editing by Alexander Smith, David Evans, Alexandra Hudson)