Labor disputes in South Africa, the world's fifth-largest gold producer, may threaten already-limited mine supply and "provide some upside," according to Australia and New Zealand Banking Group Ltd. analysts including Mark Pervan.
Miners at AngloGold Ashanti Ltd., Harmony Gold Mining Ltd. and Gold Fields Ltd. will join a July 28 strike, protesting together with workers in the country's petroleum, coal and diamond industries after rejecting pay proposals.
Silver futures for September delivery rose 0.6 percent to $40.945 an ounce after reaching $41.235, the highest price since May 4.
Platinum futures for October delivery rose 0.4 percent to $1,815.10 an ounce after reaching $1,819, the highest price since June 13. Palladium futures for September delivery advanced 0.5 percent to $840.50 an ounce.
"Robust Chinese demand together with the fears of possible strikes in platinum mines in South Africa are providing support," Commerzbank's Weinberg said.
Palladium will rise to $900 an ounce and platinum will reach $1,986 by the end of this year, Janet Kong, managing director at the research department of China International Capital Corp., told a conference today. "We are especially bullish on palladium because it is cheaper than platinum and will attract more demand as the" auto industry uses it to replace platinum, Kong said.