Copper closed Thursday at US$4.326/lb cash on the London Metal Exchange, up from the previous day’s US$4.278/lb and hitting its highest price since mid-April.

The red metal continues to be driven by increasing concerns over supply disruptions as a result of extreme weather conditions in northern Chile and strikes at some of the world’s largest copper mines.

US-based Freeport McMoRan Copper & Gold’s (NYSE FCX) Grasberg mine in Indonesia is dealing with an ongoing strike over wage negotiations, while workers at Chilean state copper producer Codelco have ratified their decision to hold a 24-hour walkout on July 11.

Chile’s Collahuasi mine has started works to normalize operations after a heavy snow storm hit the area on July 4, slowing down operations to around 30% of normal capacity. The storm also affected operations at Vancouver-based Teck Resources’ (NYSE: TCK) Quebrada Blanca mine in the same region. Meteorologists have announced another storm front anticipated for Thursday or Friday that could impact output again.

Ongoing concerns about the sovereign debt situation in Europe and China’s further hike to interest rates by 25 basis points remain as downside risks for copper and the other base metals.

“The metals remain robust, copper and lead seem to be in the driving seats and the fact they are holding firm despite a strong US dollar is noteworthy,” analyst William Adams from FastMarkets said.

“The rebounds do look robust so further gains cannot be ruled out. However, they also look extended given the overall background. Overall we would be on the lookout for signs that the rallies are faltering. We still see the rebounds as counter trend moves within the overall down trends,” he added.

In precious metals, gold closed Thursday at US$1,527.50/oz on the London Bullion Market, up from the previous day’s US$1,527.25/oz.

Silver closed Thursday at US$35.86/oz, also up from the previous session’s US$35.38/oz.

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