The key COMEX March contract notched up its largest daily percentage gain since the end of November to rise 12 cents or 3.5 percent to settle at $3.8365 per lb on Tuesday. The New York market built on momentum from Asia and Europe to end a six-day losing streak, as trading resumed following the long holiday weekend in the United States for President's Day.
It hit an intraday high above $3.84 per lb just before 11:30 am (EST), piercing its 200-day moving average at $3.8327 per lb. Prices are still shy of the five-month high of $3.9895 hit on February 9, but are up some 12 percent year-to-date and prices now stand a chance of continuing to rise before hitting the next resistance level around $3.9, predicted Frank McGhee, head metals trader at Integrated Brokerage Services LLC. The May contract also breached its 200-day moving average at $3.7916 per lb to settle at $3.8665 per lb, up from $3.749 on Friday.