May 20 (Reuters) - London copper prices gained on Friday, set for their first weekly gain in seven, as optimism over the easing of some COVID-19 restrictions in top consumer China lifted demand prospects, while a pullback in the U.S. dollar added support.

Benchmark three-month copper on the London Metal Exchange (LME) was up 0.5% at $9,465.50 a tonne, as of 0710 GMT, its highest since May 6. The contract is up 3.3% so far this week.

The most-active June copper contract on the Shanghai Futures Exchange ended daytime trading up 0.8% at 71,900 yuan ($10,774.60) a tonne.

"China is planning to open its economy gradually and go for easy lending, which is providing a positive impact to base metals," said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.

"Also, the dollar index is gradually moving lower and helping commodities."

Plans by Shanghai authorities to end a prolonged city-wide lockdown on June 1 appeared to remain on track, despite new COVID-19 cases outside quarantine areas for the first time after five days of no infections.

DOLLAR: The U.S. dollar headed for its worst week since early February against major peers, making greenback-denominated metals less expensive for buyers using other currencies.

SUPPORT: China lowered its benchmark reference rate for mortgages for the second time this year, as Beijing is keen to revive credit demand to prop up the economy.

DATA: Output of Shanghai's industries shrank 61.5% in April from a year earlier, slammed by a city-wide COVID lockdown.

POLL: The U.S. Federal Reserve will lift interest rates higher by the end of this year than anticipated just a month ago, a Reuters poll of economists found.

COPPER: Peru's prime minister on Thursday failed to broker a deal with indigenous communities to allow for the restart of operations at MMG Ltd's Las Bambas copper mine.

OTHER METALS: LME aluminium gained 1.6% to $2,951.50 a tonne, zinc rose 0.7% to $3,740, nickel slipped 1.2% to $27,895, lead climbed 2.9% to $2,122, and tin gained 1.1% to $34,600.

Shanghai aluminium added 2%, zinc gained 0.8%, nickel rose 3.5%, lead gained 1.3%, and tin climbed 2.2%.

($1 = 6.6731 Chinese yuan) (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)