Platinum, Palladium Rally on Lonmin Strike; Gold Edges Up

--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 [e-mail] and Tatyana Shumsky at [e-mail]