BEIJING, Dec 20 (Reuters) - Prices of most base metal ticked up on Wednesday on boosted investor sentiment, as demand outlook was brightened on bets of U.S. interest rate cuts next year.

Three-month copper on the London Metal Exchange (LME) was up 0.1% at $8,603 per metric ton by 0449 GMT, extending gains from the previous session.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) rose 0.7% to 68,950 yuan ($9,664.71) per ton, after hitting a three-month peak earlier.

The U.S. dollar slipped against most major currencies on Wednesday as traders continued to sell the currency on bets that the U.S. Federal Reserve will soon begin cutting interest rates, ahead of inflation data later this week.

A weaker dollar makes it cheaper for non-dollar buyers of the greenback-priced commodity.

Meanwhile, lowered supply expectation following recent mine closure buoyed outlook of the metal used in power, construction and transportation sectors supported prices.

Also lending support was firm demand as copper users looked to replenish stocks and thin inventories in China, analysts at CCB Futures said.

Premium for copper traded in the spot market rose this week, underpinned by tight supply , they added.

China kept benchmark lending rates unchanged at its monthly fixing on Wednesday, matching market expectations, after the central bank kept its medium-term policy rate steady last week.

LME aluminium added 0.6% to $2,275.50 a ton, nickel was unmoved at $16,740, zinc gained 0.4% to $2,591.50, while lead nudged 0.4% lower to $2,072 and tin slid 0.7% to $24,950.

SHFE aluminium was up 0.4% at 19,005 yuan a ton, zinc rose 1.5% to 21,160 yuan, tin gained 0.4% to 208,490 yuan, nickel moved 0.1% up to 131,330 yuan, while lead slipped 0.1% to 15,650 yuan.

For the top stories in metals and other news, click or ($1 = 7.1342 Chinese yuan renminbi) (Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu and Varun H K)