MARKETS/COMMODITIES (UPDATE 1) * LME copper at record high * Oil buoyed by weather * Gold shrugs off dollar impact (Updates throughout, pvs SINGAPORE) By Amanda Cooper LONDON, Dec 13 (Reuters) - London copper prices rallied for a second day to record highs on Monday following upbeat Chinese economic data, while crude oil and gold also gained, in defiance of a stronger dollar and Treasury yields at six-month highs. U.S. wheat and corn futures crept higher, as persistent concerns about the impact of weather on global supplies outweighed upbeat U.S. forecasts, while in the soft commodities complex, white sugar futures leapt by more than 3 percent in light trade. The dollar gained for a sixth day against a basket of major currencies, driven by the rise in Treasury yields, which hit their highest in six months as investors fretted about the outlook for U.S. fiscal and economic health. Meanwhile, a cold snap in Europe and tighter supply kept crude oil futures close to their highest in over two years. Copper for three-month delivery on the London Metal Exchange rallied by over 1 percent to a record $9,150 a tonne, before easing back to trade at $9,112 a tonne at 1152 GMT, up from $8,980 on Friday. "Base metals are reacting positively to the Chinese data and the fact that interest rates were not raised despite the rise in the inflation rate," Commerzbank analyst Daniel Briesemann said. He said import data from China, which last week showed strong numbers after a slump in October and the launch of physically backed exchange-traded products (ETPs), which some fear could exacerbate price volatility and market tightness, could propel the metal to new peaks in the months ahead. China released a swathe of macro economic numbers over the weekend, including inflation, which rose above 5 percent to a two-year high. The numbers also showed buoyant industrial production and fixed asset investment. CHINA CONCERNS Markets are worried that much of the strength in commodities stems from China, where monetary policy has encouraged high levels of consumption, leading to inflation. Chinese authorities have begun to tighten money supply and many analysts have said Beijing may soon raise interest rates. Traders are watching closely for any policy moves that would dampen demand in the world's number one commodities consumer. "In view of the high Chinese inflation numbers, which we suspect are even higher than the official data suggests, we believe a rate rise will come through sooner rather than later, and that this will ultimately trigger a correction in a number of already overheated commodity markets," said Edward Meir, senior commodity correspondent at brokers MF Global. Crude oil futures rose after OPEC agreed to keep output targets unchanged despite a surge in demand for heating fuel in the northern winter. U.S. crude for January delivery was last up by more than $1 at $88.93 a barrel. Gold edged back above $1,390 an ounce in Europe after last week's 2-percent decline revived consumer demand, although the strength of the dollar tempered price gains. Spot gold was last up 0.5 percent at $1,390.10 an ounce, having hit a record high of $1,430.95 last week. Strength in the U.S. unit usually weakens gold, as it curbs the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies. Sharper risk appetite after upbeat U.S. and Chinese economic data lifted equity markets and industrial commodities. U.S. Treasuries tumbled in Asia on Monday, driving their 10-year yields to a new six-month high as Japanese investors kept dumping Treasuries on the spectre of higher growth and higher deficits in the United States. "Gold has been highly correlated to the direction of U.S. 10-year Treasury yields over the past week," said UBS analyst Edel Tully. "Rising bond yields are not a typical breeding ground for a higher gold price, but the recent strength of that correlation is perhaps exaggerated by investors taking the opportunity to bank profits before year-end," she added. Shrugging off the effect of higher Treasury yields and a stronger dollar, agricultural commodities gained, with wheat, corn and soybean futures all rising. Chicago Board of Trade wheat for March delivery rose 4-1/2 cents to $7.80 a bushel at 1135 GMT, off a low of $7.66-1/2. The contract fell 1.6 percent on Friday and marked its first weekly loss in three weeks on the heels of a U.S. government crop report. ICE March raw sugar was up 0.42 cent or 1.4 percent at 29.55 cents a lb. Liffe March white sugar was up $24.80 or 3.4 percent to $747.30 per tonne on light volumes. (Additional reporting by Marie-Louise Gumuchian, Jan Harvey, Chris Johnson and David Brough in London and Manolo Serapio in Sinagpore; Editing by Alison Birrane)

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