Commodities Monday, August 10, 1987 : Precious Metals Advance

Precious metals futures prices advanced strongly Monday, as concern intensified over a strike by South African miners.

On other markets, oil futures prices declined, grain and soybeans were mostly higher and pork and nearby cattle deliveries advanced.

Platinum futures gained more than $14 an ounce on the fear that the strike by the National Union of Mineworkers, which so far is limited to gold and coal mines, could spread to platinum mines, said Bill O’Neill, research director of Elders Futures in New York.

“This is a worsening labor situation,” said O’Neill. “The strike appears to be the most serious labor disruption in the last year.”

There was a report Monday that a strike vote was in the works for union employees at the country’s major gold refinery. If the refinery was closed, it would effectively immobilize the above-ground stocks of gold ore.

“The scope of this strike is far worse than recent ones,” said O’Neill. “And some people feel it could be a lengthy one.”

At least a quarter of a million workers are on strike and the union said many more are expected to join the walkout this week.