Copper edged towards the psychologically important $7,000-per-tonne mark on the London Metal Exchange Wednesday and set new 2009 highs in New York despite rising stocks and disappointing housing starts.

Three-month copper closed second-ring trade on the LME at $6,950.50 per tonne, up 2.4 percent from $6,790.50 Tuesday, as the slumping dollar and Chinese economic data pushed the contract to a 14-month high.

On the Comex division of the New York Mercantile Exchange, the three-month delivery contract hit an intra-day high of $3.172 per pound, the highest level since September last year. The contract ended the day at $3.1105 per pound, up marginally from $3.1085 per pound Tuesday.

"You've got to understand when you're on a freight train. The commodities cycle is definitely on an up trend and heading higher," a New York-based trader said. "The...