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Copper makes

sharp gains

NEW YORK: COMEX copper ended sharply higher on Wednesday, partly on general gains in commodities and short covering in copper, traders and analysts said.

Funds were heavy buyers in London and New York, but it was not clear if they covered short positions or took out fresh long positions, said Richard Hirsch of Deutsche Sharps Pixley Metals. "I would bet they were covering shorts," he added.

William O'Neill of Merrill Lynch said options-related buying on LME started the rally and triggered buy stops on LME and on COMEX at 114.50 to 115.00 cents basis most-active May.

May ended 2.35 cents higher at 115.40 cents per lb, traded 115.90 to 113.40 cents. Spot April closed 2.70 cents higher at 115.80 cents, wiping out the brief contango.

"We also had a roaring strong performance across the board in commodities, and that may have been a contributing factor," O'Neill said.

Hirsch said regular dips in LME stocks, good U.S. economic performance and prospects along with signs of a reawakening in the Far East market, may be lifting some gloom from red metal.

"Technically the market also looks wonderful. We rallied up through the 13-day and closed above the 40-day moving average," Hirsch said.-Reuter