METALS-Nickel, zinc, aluminium pull back from multi-year highs

* Nickel retreats from two-year peak, zinc from 10-year high

* GRAPHIC-2017 asset returns: http://tmsnrt.rs/2jvdmXl (Releads, updates prices)

LONDON, Nov 2 (Reuters) - Traders cashed in gains in nickel, zinc and aluminium on Thursday after the metals hit multi-year highs the day before, with nickel posting its biggest two-day jump in more than three years.

The stainless steel material surged by more than $1,100 a tonne over Tuesday and Wednesday on expectations that demand would be boosted by a rise in electric car buying, while zinc hit its highest since August 2007 on deficit expectations.

"It's going to be a long time before electric vehicles have a material impact on overall demand," Capital Economics analyst Caroline Bain said. "It is good news for nickel that it's got a longer-term future, but in short, it's a bit overdone.

"Zinc has got a much better (picture) underpinning it - exchange stocks are very low, supply is tight," she added. "Zinc has got a little ahead of itself, but it has a much better underlying story."

Aluminium also pulled back after matching last week's five-year peak.

* NICKEL: London Metal Exchange nickel, which hit its highest in more than two years at $13,010 a tonne on Wednesday, was down 2.7 percent at $12,440 at 1535 GMT. Prices are still up more than 7 percent this week.

* ELECTRIC VEHICLES: Manufacturers are increasingly trying to boost usage of nickel in electric vehicle batteries in preference to expensive, hard-to-source cobalt.

* ZINC PRICES: Zinc was down 1.5 percent at $3,226.50 a tonne after rising to its highest in a decade on Wednesday at $3,326.

* ZINC STOCKS: Zinc inventories held in LME-registered warehouses <MZNSTOX-TOTAL> fell by another 3,125 tonnes, data showed on Thursday, to their lowest since early October at 250,900 tonnes.

* LME WEEK: Traders, producers and end-users have gathered in London for a key industry conference this week.

* U.S. DOLLAR: The dollar fell as investors took profits after the Federal Reserve left interest rates unchanged on Wednesday, as expected, while uncertainty around the next U.S. Federal Reserve chair wound down as U.S. President Donald Trump prepared to nominate moderate Governor Jerome Powell.

* COPPER: LME copper was flat at $6,929 a tonne after Wednesday's 1.3 percent gain.

* COPPER TECHNICALS: LME copper could retest resistance at $7,013 a tonne because its rally from the Oct. 27 low of $6,782.50 looks incomplete, Reuters technical analyst Wang Tao said.

* OTHER METALS: Aluminium was down 1 percent at $2,162.50 a tonne, having risen on Wednesday to match last week's five-year high of $2,215 a tonne. Lead was 0.6 percent lower at $2,466.50 and tin was up 0.1 percent at $19,415.

(Additional reporting by Melanie Burton in Melbourne and Tom Daly in Beijing; Editing by David Goodman and David Evans)