LONDON, Feb. 25 -- Goldman Sachs Group Inc. ended its recommendation to bet on higher copper prices because of concern that economic recovery in developed markets is not "yet on solid footing."

The bank recommended buying copper for delivery in June on Feb. 5, since when the contract on the London Metal Exchange advanced 13 percent. Goldman may recommend the trade again should prices decline, analysts Allison Nathan, Jeffrey Currie and Tiger Chen said in a report today.

Copper more than doubled on the LME last year as investors anticipated that economies recovering from the steepest slump since World War II would use more commodities. Stockpiles in warehouses monitored by the bourse have more than doubled since July and prices dropped 3.5 percent this year on speculation that mines will expand supply faster than gains in demand.

"Despite recent positive signs in Developed Market, we do not believe that DM is yet on solid footing," the analysts wrote in the report. "We, therefore, still view DM demand as a key risk to our view."

Demand from China, the world's biggest copper consumer, for global supplies may weaken because prices on the Shanghai Futures Exchange are now close to those in London, discouraging arbitrage trading, the bank said.

Goldman expects the three-month LME copper contract to trade at $8,125 a metric ton in six months and $7,840 in 12 months. The contract was at $7,090 as of 1:46 p.m. in London.