Copper futures shot up to highs dating back 16 years on Friday as strikes, declining inventories and a falling dollar combined with bullish technicals, which traders said sparked a rash of fund and speculative buying.
Copper futures on the New York Mercantile Exchange's COMEX division followed the lead of London copper, which was pushed higher early in the session when Chinese buyers returned from a week-long holiday to a market that had launched a steep rise in their absence.
The added liquidity from Asia launched London Metal Exchange copper to near 16-year highs and spilled over to the New York session, which opened with strong gains.
Benchmark December copper jumped 3.45 cents to $1.4620 a lb. It traded in a range between $1.4235 and $1.4650, a level last seen in 1988 on the spot continuation chart. Spot October rose 3.25 cents to $1.4650 a lb.
Volume picked up in the buying rush, with an estimated 5,000 lots traded by 10 am EDT (1400 GMT).
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