US copper futures started with steep gains early Tuesday, when some participants needed to cover short positions a day after a sharp selloff, traders said. On Monday, some fund investors sold holdings in copper as well as other commodities after deciding to take profits ahead of the Federal Reserve's policy-setting meeting Tuesday, when it was expected to raise interest rates by a quarter point.
But copper traders said red metal losses were probably overdone and some players needed to cover short positions.
At the COMEX division of the New York Mercantile Exchange, benchmark May copper rallied 1.30 cents to $1.5020 a lb., but the high reached up to $1.5080 from a low at $1.4840.
Spot March copper rose 1.60 cent to $1.5050 a lb. Back month contracts were up 0.30 to 1.60 cents. A few contracts hit new lifetime highs.
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