Chile peso extends rally on copper, global bourses

* Peso extends rally on higher copper, gains in markets

* Surge defies recent central bank threats to intervene

(Recast with peso figure, adds trader quote, copper price)

By Froilan Romero and Maria Jose Latorre

SANTIAGO, Nov 23 (Reuters) - Chile's peso CLP=CL extended gains on Monday, surging more than 2 percent on rising copper prices and gains in global stocks, shrugging off central bank warnings of possible intervention to rein in the sharp appreciation.

The peso rose to 491.00/491.50 per U.S. dollar, compared to Friday's close of 501.20/501.70. The currency was trading at 16-month highs after it lost ground late last week on renewed threats of central bank intervention.

"We opened the session with a strong peso appreciation, the product of an advance on global bourses as well as copper prices that reached 14-month highs," a local trader said.

The prices of three-month copper MCU3 on the London Metal Exchange hit 14-month highs earlier on Monday, driven by dollar weakness and gains in other commodity markets.

Chile, the world's top producer of the red metal, posted a trade surplus of $1.142 billion in the first half of November compared with a $726.3 million surplus during the same period a year ago, the central bank said on Monday.

While the trade surplus was not seen having a direct impact on peso appreciation, it added pressure to the falling dollar in the local currency market, traders said.

Chile's Central Bank President Jose De Gregorio said last week that he did not rule out intervening in the country's foreign currency market to curb peso appreciation of around 29 percent against the dollar year-to-date.

The peso has been one of the best-performing emerging market currencies this year against a weaker U.S. dollar. Some analysts expect the central bank to intervene if it hits 480 per dollar. (Reporting by Froilan Romero; Writing by Aaron Nelsen; Editing by Padraic Cassidy) ((aaron.nelsen@thomsonreuters.com; Tel: +562-370-4252))