Rally Pushes Gold Up $13; Platinum Jumps $25 Limit : Analysts Cite South Africa Turmoil, Declining Dollar

Gold and platinum prices jumped Friday on new optimism about the metals. Trading was frantic here as dealers rushed to cover agreements to sell the metals.

On the Commodity Exchange, gold for current delivery jumped $13 to close at $375.60. That was its highest level since it closed at $383.60 on June 8, 1984, the Comex said. Half an hour later, bullion was quoted at $374 an ounce at Republic National Bank in New York, up $11.75 from Thursday’s late bid.

Platinum for current delivery rose the $25 limit to close at $514.50 an ounce on the Mercantile Exchange in New York. The last time the metal passed the $500 mark was in 1981, the exchange said.

Traders said the rally was fueled by renewed interest from speculators, who, after taking profits earlier in the session, started buying again after the price advanced into new highs.

And the possibility that South Africa, which supplies more than 80% of the West’s platinum and 60% of its gold, could retaliate against external pressure by reducing sales to nations that impose economic sanctions was described by one New York trader as “a real threat.”

Dealers noted that although platinum was still far off its record level of $1,050 an ounce touched in early 1980, it had already jumped by more than $60 from its level a week ago of $460.

The prices began to rise on buying interest from Japan, the Middle East and the Swiss banks, the exchange said.

As the market built up momentum, prices passed key technical points and technical buying developed.

Analysts also cited the declining dollar, a rally in the bond markets, steadier oil prices, the overall weak economy, fears that South African turmoil would disrupt platinum supplies and concern about President Reagan’s health.

Gold prices rose a bit more modestly earlier in Europe.