Commodities : Monday, Aug. 24, 1987 : Metals Futures Prices Firm

Precious metals prices took on a firm note Monday, aided by the weak dollar, inflationary economic reports and news from the foreign scene.

“After selling off sharply toward the end of last week, metals are back responding to fundamentals,” said Bette Raptopoulos, an analyst in New York with Prudential-Bache Securities.

Over the weekend, violence intensified in the South African mineworkers’ strike, she said, adding that the market reacted to this news but ignored consessions one company made Monday to the striking workers.

Precious metals also advanced on a report that U.S. escort vessels forced a small Iranian warship away from a convoy of Kuwaiti oil tankers in the Persian Gulf.

Economic data from the Commerce Department put consumer spending up 0.9% in July while personal income gained only 0.4%. The implication is that consumers are spending at a faster pace than they’re earning, but the inflationary implications were only modest and had a limited effect on metals prices, said Ms. Raptopoulos.