--Platinum for April delivery rises 0.6% to $1,462.40 a troy
ounce
--Strikes scheduled to start on Thursday at South Africa's
biggest platinum mining companies
--Gold settles down 0.3% at $1,238.60 as investors await
economic data
(Adds gold settlement, price table.)
By Matt Day
NEW YORK--Platinum climbed to the highest price in more than two
months ahead of a planned strike in South Africa that may interrupt
production in the top producer of the precious metal.
Platinum for April delivery, the most actively traded contract,
rose $8.90, or 0.6%, to settle at $1,462.40 a troy ounce on the New
York Mercantile Exchange, the highest since Nov. 6. Palladium,
produced in South Africa as a byproduct of platinum mining, also
settled at a two-month high. Palladium for March delivery edged up
0.1% to $748.85 a troy ounce.
The Association of Mineworkers and Construction Union, which
represents most of South Africa's platinum miners, plans to launch
an open-ended strike on Thursday. The union is requesting pay
increases for members to compensate for increased living costs,
which they say are rising faster than salaries.
Anglo American Platinum (AMS.JO), Impala Platinum (IMP.JO) and
Lonmin PLC (LMI.LN), targets of the planned strike and the three
largest platinum mining companies by output, in a statement this
week called the union's wage demands unrealistic.
"If this strike does continue, you could get an extreme market
reaction" should investors anticipate a supply squeeze, said Peter
Hug, director of trading with bullion dealer Kitco Metals Inc. in
Montreal. Mr. Hug said he doesn't anticipate a lengthy strike, but
platinum and palladium prices are likely to be supported "as long
as that remains a possibility."
Investors have focused on the risk of supply shortfalls since an
August 2012 strike at Lonmin's Marikana mine resulted in clashes
with police and left dozens dead. The crisis sparked rolling
strikes through South Africa's mining industry, cutting the
country's platinum output by 16% that year.
This year, platinum supplies are expected to fall short of
demand by about 12 tons, even without crippling strikes, analysts
with Macquarie Bank estimate.
Analysts with the bank expect a reinvigorated global auto sector
to boost demand for the metal, used in catalytic converters,
helping push prices to $1,600 an ounce by the end of the year.
Platinum and palladium are used chiefly in the devices, which scrub
emissions from automobile exhaust.
Gold futures eased a bit on Wednesday as investors stuck to the
sidelines ahead of readings on global manufacturing and U.S.
unemployment data slated for release on Thursday.
The most actively traded gold contract, for February delivery,
fell $3.20, or 0.3%, to settle at $1,238.60 a troy ounce on the
Comex division of the Nymex.
Gold futures have largely tracked recent U.S. economic data as
investors looked for clues as to the pace of the reduction in the
Federal Reserve's stimulus program. Anticipation of a rollback in
the Fed's bond-buying program has weighed heavily on gold as
investors cashed out of the perceived safe-haven asset in favor of
other investments. Many investors sought gold as a hedge against
inflation and other economic risks in recent years as the Fed
ramped up its bond purchases.
Settlements (ranges include open-outcry and electronic trading):
London PM Gold Fix: $1,241.00; previous PM $1,238.00
Feb gold $1,238.60, down $3.20; Range $1,237.40-$1,243.50
Mar silver $19.839, down 3.1 cents; Range $19.770-$19.940
Apr platinum $1,462.40, up $8.90; Range $1,447.80-$1,465.90
Mar palladium $748.85, up 80 cents; Range $743.25-$749.65
--Devon Maylie contributed to this article
Write to Matt Day at matt.day@wsj.com
