--Comex December gold settles up $6.70, or 0.4%, at $1,753.00 a
troy ounce
--Platinum, palladium rebound as South Africa gold strike
deadline approaches
--Moody's affirmation of Spain's credit rating, euro's gains
prop up gold
--HSBC trims 2012 gold forecast to $1,700/oz; raises 2013, 2014
views on Fed easing
By Matt Day
NEW YORK--Platinum and palladium continued their recent rebound
Wednesday as traders watched the approach of an impending deadline
for striking workers at a major South African gold mining company
to return to work.
The most actively traded platinum contract, for January
delivery, rose 1.5%, or $25.30, to settle at $1,670.50 a troy ounce
on the New York Mercantile Exchange. Palladium for December
delivery gained 2.3%, or $14.45, to settle at $653.40 an ounce.
South Africa, the largest platinum producer and the No. 2
palladium mining country, has been hit by spreading unrest after a
deadly strike beginning in August at a Lonmin PLC (LNMIY,
LMI.LN)-owned platinum mine. Strikes have spread to gold and iron
ore mines, as well as the transportation sector.
Wednesday's gains came ahead of a deadline set by Gold Fields
Ltd. (GFI, GFI.JO), the country's second-largest producer of gold,
for striking workers to return to the job. The company has said it
will fire workers that haven't quit the strike by Thursday's
afternoon shift. About a third of Gold Fields' employees had
returned Wednesday, the company said.
Output remains suspended at six mines owned by top platinum
mining company Anglo American Platinum Ltd. (AGGPY, AMS.JO).
Investor sentiment toward platinum and palladium, traders with
TD Securities said in a note, "is bullish given the social issues
that persist in South Africa."
Gold also gained Wednesday, taking cues from moves in currency
markets as investors cheered an affirmation of Spain's credit
rating.
The most-actively traded gold contract, for December delivery,
rose $6.70, or 0.4%, to settle at $1,753 a troy ounce on the Comex
division of the New York Mercantile Exchange.
Benchmark government-borrowing costs for Spain, a focal point
for investors tracking Europe's evolving banking crisis, fell to
six-month lows after Moody's Investors Service reaffirmed the
country's credit rating. Madrid is seen by some market watchers as
inching closer to a formal request for international financial
support for its rattled financial system.
Easing tension in Europe pushed the euro to a one-month high
against the dollar Wednesday. Gold and the dollar tend to move
inversely, as a stronger dollar makes dollar-denominated futures
appear more expensive for buyers using other currencies.
Analysts with Commerzbank said the euro's move, along with the
increased "likelihood that the Spanish government's resistance to a
request for aid will crumble," was propping up gold Wednesday.
HSBC Holdings PLC (HBC, HSBA.LN) lowered its gold-price forecast
for this year Wednesday but increased its expectations for 2013 and
2014 on the Fed's stimulus measures. HSBC now sees gold prices
averaging $1,700 a troy ounce this year, down 3.4% from its
previous outlook.
"Although the first rush of QE3-inspired gold buying is over, we
believe that the Fed's open-ended commitment to easing until U.S.
labor markets improve will support gold well into 2013," HSBC
analyst James Steel said.
The investment bank expects gold prices next year to average
$1,850 a troy ounce, up 4.2% from earlier forecasts. The 2014
expectation was raised 1.4% to $1,775 an ounce.
Settlements (ranges include open-outcry and electronic trading):
London PM Gold Fix: $1,749.00; previous PM $1,746.50
Dec gold $1,753.00, up $6.70; Range $1,744.00-$1,755.00
Dec silver $33.232, up 27.3 cents; Range $32.880-$33.290
Jan platinum $1,670.50, up $25.30; Range $1,646.60-$1,672.90
Dec palladium $653.40, up $14.45; Range $639.85-$654.95
--Francesca Freeman and Devon Maylie contributed to this
article.
Write to Matt Day at matt.day@dowjones.com