--Platinum futures settle up 1.3% after brief strike at major
producer Tuesday
--Strike follows killing of union leader last week
--Gold climbed after U.S. ADP employment report, but bounce
fades
--Comex August gains $1.30, or 0.1%, to settle at $1,398.50 a
troy ounce
By Matt Day
NEW YORK--Platinum futures climbed to a nearly four-week high
Wednesday as investors bet that supplies may be disrupted following
fresh labor strife in the top platinum-producing country.
A series of strikes and a shooting at a union office in the last
few weeks have renewed tension in South Africa's mining industry.
The country last year churned out 73% of the world's platinum
output last year, according to specialty chemicals company and
major industrial precious metals user Johnson Matthey PLC, and 35%
of palladium.
The most actively traded platinum contract, for July delivery,
rose $19.50, or 1.3%, to settle at $1,510.60 a troy ounce on the
New York Mercantile Exchange, the highest settlement since May
9.
Palladium rose 0.7% to settle at $756.45 a troy ounce. Palladium
in South Africa is produced as a by-product of platinum mining.
Thousands of workers at Impala Platinum Holdings Ltd., the
second-largest platinum producing company, staged a brief strike
Tuesday before resuming work overnight, the company said.
A union leader was killed and another wounded in a shooting at a
Lonmin PLC office last week. The same Lonmin mine was the site of a
two-day strike last month, and in August clashes between police and
protesters there left 34 protesters dead.
Lonmin spokeswoman Sue Vey said the atmosphere at the mine was
"fragile" Wednesday. "You can feel the fragility of it," Ms. Vey
said.
"The tensions in South Africa have not abated," Societe Generale
analyst Robin Bhar said in a note. "There is still a risk of
further industrial action."
Gold futures edged higher Wednesday as a report on U.S. hiring
came in weaker than expected. The most actively traded gold
contract, for August delivery, rose $1.30, or 0.1%, to settle at
$1,398.50 a troy ounce on the Comex division of the Nymex.
Payroll processor ADP said the U.S. private sector added 135,000
jobs last month, below the expected gain of 170,000. Gold prices
have been under pressure for much of this year as a strengthening
U.S. labor market increased the perceived likelihood that the
Federal Reserve would pull the plug on its stimulus measures.
Also Wednesday, India increased the tax on gold imports, part of
the government's efforts to curb domestic consumption. Imports of
refined gold will face a tax of 8%, from 6% previously, Revenue
Secretary Sumit Bose said.
India is the largest gold consumer, and imports are a major
driver of the country's trade deficit.
Settlements (ranges include open-outcry and electronic trading):
London PM Gold Fix: $1,404.00; previous PM $1,399.50
Aug gold $1,398.50, up $1.30; Range $1,395.10-$1,410.30
Jul silver $22.472, up 6.3 cents; Range $22.290-$22.740
Jul platinum $1,510.60, up $19.50; Range $1,489.10-$1,514.00
Sep palladium $756.45, up $5.40; Range $751.70-$758.00
-Devon Maylie, Rajesh Roy and Biman Mukherji contributed to this
article.
Write to Matt Day at matt.day@dowjones.com
