--Platinum futures gain 0.8% to $1,503.40 after brief strike at
major producer Tuesday
--Strike follows killing of union leader last week, strike at
Glencore Xstrata mines
--Gold rises after U.S. ADP employment report, but bounce
fades
--Comex August gold trades up 0.3% at $1,400.70
By Matt Day
NEW YORK--Platinum futures rose to a three-week high Wednesday
on worries about fresh strikes in top producer South Africa.
Thousands of workers at Impala Platinum Holdings (IMPUY,
IMP.JO), the second-largest platinum producing company, staged a
brief strike Tuesday before resuming work overnight, the company
said.
The most actively traded platinum contract, for July delivery,
was recently up 0.8% at $1,503.40 a troy ounce on the New York
Mercantile Exchange. Futures earlier hit the highest intraday price
since May 14.
But stoppage was the latest sign of renewed tension in South
Africa's mining industry, which last year churned out 73% of the
world's platinum output, according to specialty chemicals company
and major industrial precious metals user Johnson Matthey PLC.
A union leader was killed and another wounded in a shooting at a
Lonmin PLC (LMI.LN, LNMIY) 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" on Wednesday. "You can feel the fragility of it," Ms. Vey
said.
Meanwhile, Glencore Xstrata PLC (GLNCY, GLEN.LN) on Monday
dismissed about 1,000 workers who went on strike at three of its
chrome mines in South Africa.
"South African unrest continues," said Peter Hug, director of
trading with Kitco Metals, lending a "bullish tone" to
platinum.
Gold futures pointed higher on Wednesday after a report on U.S.
hiring came in weaker than expected.
The most actively traded gold contract, for August delivery,
recently traded up $3.50, or 0.3%, at $1,400.70 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 had
traded at about $1,400 a troy ounce in the minutes before the data,
and climbed as high as $1,409 an ounce after its release.
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.
Some investors see gold as a hedge against the inflation that
can follow such policies. Easy-money programs from the Fed and
other central banks have been a key support for gold prices in
recent years.
-Devon Maylie contributed to this article.
Write to Matt Day at matt.day@dowjones.com