Platinum Climbs to Six-Week High; Gold Gains as SPDR Assets Jump

Platinum advanced to the highest level in six weeks on concerns violence in South Africa, the biggest producer, will curb supply. Gold rose for a fourth day after holdings in the biggest exchange-traded fund backed by bullion increased the most since November.

Platinum added as much as 0.3 percent to $1,479.12 an ounce, the most expensive since July 5, before trading at $1,478.62 at 1:54 p.m. in Singapore. Gold rose as much as 0.2 percent to $1,619.95 an ounce. December-delivery bullion was little changed at $1,621 on the Comex in New York.

Police shot dead 34 striking workers and injured 78 others on Aug. 16 after six days of violence between rival unions at Lonmin Plc (LMI)’s platinum mine in the North West province. The company has asked 3,000 employees to return to work, it said. Holdings in the SPDR Gold Trust rose 0.9 percent to 1,274.74 metric tons on Aug. 17, the biggest gain since Nov. 17, according to data compiled by Bloomberg.

“It’s been a reaction to the violence we’ve seen at Lonmin,” said David Lennox, a resource analyst at Fat Prophets in Sydney, referring to platinum. “You remove that supply for any period of time and it will impact the pricing.”

The Federal Reserve releases minutes this week of its most recent meeting. In Europe, the ECB may set limits on yields of euro-area sovereign debt by pledging unlimited bond purchases, Germany’s Spiegel magazine reported. The policy will be decided at the September governing council meeting, Spiegel said.

U.S. home sales and orders for durable goods probably climbed in July, signaling the economy may be strengthening. China’s Premier Wen Jiabao said last week less inflation allows more room to adjust monetary policy.

“There’s a feeling that governments around the world at some stage are going to do something about further monetary easing,” said Gavin Wendt, founder and senior resource analyst at Mine Life Pty in Sydney, referring to gold.

Palladium dropped as much as 0.7 percent to $604 an ounce and traded at $605.20. Prices earlier rose 0.2 percent to $609.50, the costliest in almost two months. Spot silver rose 0.5 percent to $28.2225 an ounce.

To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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