COMEX copper futures jumped almost 4 percent on Monday to close at a 6-1/2 year peak as busy fund buying and robust Chinese demand extended a recent powerful rally in the red metal, traders and analysts said.
Copper prices hit a level last seen in August 1997, with continued US stock market strength, dollar weakness and optimism on economic growth prospects also helping fuel gains.
"It was speculative buying in tandem with the continued short covering in copper - there were a ton of buy-stops hit today," said David Meger, analyst at Alaron Trading in Chicago.
Copper for March delivery on the New York Mercantile Exchange's COMEX division shot up 4.15 cents, or 3.97 percent, to $1.0870 a lb, after trading between $1.062 and a life-of-contract peak of $1.0910.
Other months established contract highs as well, with spot January up 4.00 cents at $1.0830 and back months surging 4.00-4.15 cents.
Final COMEX copper estimated volume was a busy 11,000 lots, compared with the previous tally last Wednesday at 4,014 lots.