--Nymex October platinum falls $36.30, or 2.2%, to settle at
$1,636.30 a troy ounce
--Comex December gold settles up 60 cents at $1,771.20 a troy
ounce
--Striking workers at Lonmin PLC mine say they plan to return to
work Thursday
--Investors warily watch Spain, euro-zone developments
(Adds price table.)
By Matt Day and Tatyana Shumsky
NEW YORK--Platinum futures fell by more than 2% Tuesday, after
the announcement that striking workers at a South African mine
owned by Lonmin PLC (LMI.LN) had accepted a wage increase and will
return to work.
The news was seen limiting the likelihood of a prolonged labor
dispute in the top platinum-producing country that could limit the
world's supply of the metal. Violence involving workers at Lonmin's
Marikana mine has left 45 dead since the strike began last month,
leading to calls for a nationwide labor stoppage. South Africa
accounts for about 80% of world platinum-mine production.
A community leader who works with mediators at Marikana on
Tuesday said the striking workers had accepted a 22% wage increase
and will return to work Thursday. A spokeswoman for Lonmin said the
company couldn't confirm the details of the latest offer as
negotiators work to finalize a deal.
The most-actively traded platinum contract, for October
delivery, fell $36.30, or 2.2%, to settle at $1,636.30 a troy ounce
on the New York Mercantile Exchange, the lowest settlement price
since Sept. 11. Futures are still up 16.9% since the strike at
Marikana began Aug. 10.
Normal operations at platinum mines owned by Anglo American PLC
(AAL.LN) and Sylvania Platinum Ltd. (SLP.LN) resumed Tuesday,
according to the companies.
Despite the recent disruptions, many analysts expect platinum
supply to outpace demand this year. Platinum is used chiefly as an
exhaust filter in catalytic converters, particularly in diesel
engines. Europe, teetering on the edge of recession amid a banking
crisis, is the largest market for diesel automobiles.
Gold futures gained slightly Tuesday in muted trading as traders
weighed whether the market's rally after the U.S. Federal Reserve
announced new economic-stimulus measures was running out of
steam.
The most-actively traded contract, for December delivery, rose
60 cents to settle at $1,771.20 a troy ounce on the Comex division
of the Nymex.
Gold prices had surged to a six-month high after the Federal
Reserve announced an aggressive and open-ended stimulus program
aimed at cutting mortgage costs and stimulating economic
growth.
Investors who worry the added liquidity will lift inflation tend
to buy hard assets like gold to guard their wealth against such
risks.
But gold's upward march appeared to stall in recent days as some
investors moved to cash in on recent gains while others moved to
the sidelines.
Spain continued to resist calls to formally request euro-zone
help, despite widespread expectations that the region's
fourth-largest economy will eventually be forced to seek a bailout.
The standoff between Spain and its euro-zone partners has put
pressure on the euro and further damped investor appetite for
gold.
Gold futures are traded in dollars, and the contracts become
more expensive for buyers who use other currencies when the dollar
strengthens.
"The calm after the storm, that's what we're dealing with here,"
said Bill O'Neill, broker and futures analyst with Logic Advisors.
"All we're seeing here is a little consolidation given the
magnitude of the rally over the past couple of months."
Settlements (ranges include open-outcry and electronic trading):
London PM Gold Fix: $1,769.50; previous PM $1,770.00
Dec gold $1,771.20, up 60 cents; Range $1,753.20-$1,775.90
Dec silver $34.718, up 35.1 cents; Range $34.015-$35.100
Oct platinum $1,636.30, down $36.30; Range $1,619.00-$1,677.60
Dec palladium $667.35, down $21.75; Range $663.20-$686.95
-Devon Maylie contributed to this article.
Write to Matt Day at matt.day@dowjones.com