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Copper gains further

NEW YORK: Comex copper made further gains in midday trading, but some traders believed the market had peaked and would retrace before close.

"It's the locals initiating a shortcovering rally - they are trading the market to the stops. It's all technical", a market source said.

Bette Raptopoulos of Prudential Securities said early reports of a rail strike in Zambia, a medium-sized copper producer, lent some support to the market.

"There was also some technical buying which broke through resistance", Raptopoulos said. "But the rationale is there. There are clearly signs of economic recovery in the US".

At 1249 EDT May copper was up 2.35 cents at 115.40 cents per lb, traded 115.90 to 113.40 cents. Spot April was up 2.30 cents at 115.40 cents, the recently-established April to May contango remaining in place.-Reuter