Word of strikes buoys platinum; gold gains

Trading floors were closed on Monday in observance of the Martin Luther King Jr. holiday, but electronic trading kept prices pushing higher overnight. Gold for February delivery GCG4 +1.01%  jumped $11.60, or 0.9%, to $1,251.80 an ounce. March silver SIH4 +0.65%  added 15 cents, or 0.7%, to $20.20 an ounce.

Gold futures ended last week with a bang, rising to their highest level in more than five weeks as a move lower for most U.S. equities and a decline in consumer sentiment shined a positive light on the precious metals’ investment appeal.

Elsewhere in metals trading, platinum for April delivery PLJ4 +2.34%  surged $33.50, or 2.3%, to $1,465 an ounce, bouncing around levels not seen since October after South African platinum miners said they plan to begin an open-ended strike on Thursday as they seek higher pay.

“From a tactical perspective, the metal could move closer to $1,500 as new longs enter the market on the back of the impending platinum sector strikes in South Africa,” said Standard Bank’s Walter de Wet. “Nevertheless, adding new longs above $1,500 in platinum holds little value on a risk/return perspective.”

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