--Nymex July platinum recently trades up 1.3% at
$1,530.20/oz
--Platinum nears eight-week high as miners at South Africa's
Lonmin vote for strike
--Palladium follows platinum's lead, rallies to nine-day
high
--Gold futures climb as dollar falls against other
currencies
By Matt Day and Tatyana Shumsky
NEW YORK--Platinum futures neared an eight-week high while
palladium rallied to a nine-day high Thursday amid concerns about
supply disruptions from South Africa, a large producer of both
metals.
The most actively traded platinum contract, for July delivery,
recently traded up $19.60, or 1.3%, at $1,530.20 a troy ounce on
the New York Mercantile Exchange. Futures rose as high as $1,532.50
an ounce, the highest since April 12.
Members of the Association of Mineworkers and Construction Union
this week voted to go on strike at platinum producer Lonmin PLC
(LMI.LN), but the union's president has asked members for more time
to negotiate with the company's management.
"We want to avoid a strike," AMCU president Joseph Mathunjwa
said.
AMCU members say they're frustrated with the union recognition
process at the mine after the group recently beat out a rival union
for members. Union officials at AMCU and rival National Union of
Mineworkers have been shot and killed in recent weeks.
Even if AMCU is able to convince its members to avoid another
strike now, the mining sector faces the possibility of more
industrial action as gold and coal producers begin negotiations for
a new two-year wage agreement this month. Wage talks are normally
accompanied by strikes as part of the negotiating process to demand
higher wage increases.
South Africa accounts for about three quarters of global
platinum output and about a third of the world's palladium supply.
Platinum and palladium are often found together in one ore
body.
Palladium for September delivery was recently up $6.55, or 0.9%,
at $763 a troy ounce. The contract touched an intraday high of
$764.50 an ounce, its highest traded price since May 28.
A brief strike was held at Impala Platinum Holdings Ltd. (IMPUY)
on Tuesday, and workers at chrome mines owned by Glencore Xstrata
PLC (GLEN.LN) remain on strike.
Gold was little changed after European Central Bank chief Mario
Draghi didn't outline a course change to monetary policy in a press
conference following the bank's policy meeting.
Gold prices drew strength from a sharply weaker dollar, which
fell against a basket of international currencies. The ICE Dollar
Index was recently down 0.8% at 81.972.
Dollar-denominated gold futures become cheaper to investors who
use other currencies when the greenback weakens, luring them to the
metals market as buyers.
Gold for August delivery, the most active contract, was recently
up $10.20, or 0.7%, at $1,408.70 a troy ounce on the Comex division
of the NYMEX.
--Devon Maylie contributed to this article.
Write to Matt Day at matt.day@dowjones.com and Tatyana Shumsky
at tatyana.shumsky@dowjones.com