Platinum prices tumble as South Africa’s biggest union meets
By Victor Reklaitis and Shawn Langlois, MarketWatch
NEW YORK (MarketWatch) — Gold prices built on recent gains Thursday as worries over the implications from the violence in Iraq grew, while platinum and palladium slumped as traders bet that long-running mining strikes will come to an end.
Gold for August delivery GCQ4 +0.35% rose $4.40, or 0.4%, to $1,265.60 an ounce.
July platinum PLN4 -2.66% slid $40.60, or 2.7%, to $1,440.50 an ounce, and September palladium PAU4 -3.08% dropped $32.40, or 3.8%, to $827.75 an ounce.
South Africa’s Association of Mineworkers and Construction Union will discuss new offers from platinum miners about wages and working conditions with its members, according to a Wall Street Journal report . The union is expected to report back to the mining companies by Friday, and it’s possible that a 21-week strike will end.
South Africa has been in the grips of a costly and lengthy mining strike, with employees at Anglo American Platinum Ltd. ZA:AMS +2.90% , Impala Platinum Holdings Ltd. ZA:IMP +2.45% and Lonmin PLC UK:LMI +5.53% taking part in the walkouts.
While platinum and palladium are tumbling, some analysts see it as a time to buy.
“Platinum and palladium (are) lower on hopes the strikes will be resolved, but the pull-back should be viewed as a buying opportunity against the supply/demand fundamentals,” said Peter Hug, global trading director at Kitco Metals Inc., in emailed comments on Thursday. “It is anticipated that palladium’s supply deficit will be the greatest in three decades, this year.”
Regarding gold’s gain, Hug said the yellow metal is being “aided by some safe-haven buying in response to the fierce fighting in Iraq.” Read more: Iraq closer to all-out conflict
Investors also are taking in fresh U.S. economic data. The Commerce Department said U.S. retail sales rose 0.3% in May, below the 0.7% forecast of economists polled by MarketWatch. But the government also sharply revised sales in April to show a solid 0.5% gain instead of a tepid 0.1% increase as originally reported.
Initial weekly jobless claims rose to 317,000, the Labor Department said. Economists polled by MarketWatch had expected claims to total 310,000. Later Thursday, a report on business inventories will come in at 10 a.m. Eastern.
On Wednesday, gold kept its modest winning streak alive, moving higher as the stock market waffled in the face of dimming prospects for global growth.
Elsewhere in metals trading on Thursday, July silver SIN4 +0.38% rose 8 cents, or 0.4%, to $19.25 an ounce, while high-grade copper for July deliver HGN4 -0.20% dipped by a penny, or 0.2%, to $3.04 a pound.
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Victor Reklaitis is a New York-based markets writer for MarketWatch. Follow him on Twitter @VicRek.
Shawn Langlois is an editor and writer for MarketWatch in Los Angeles. Follow him on Twitter @slangwise.
