October platinum has continued to climb higher this morning, and rose above the $1,700 level for the first time in 6 months. While platinum may have found support from yesterday's FOMC meeting results, many traders feel that the main source of strength continues to come from South African labor problems. Striking miners at the Marikana mine have rejected the latest pay offer from Lonmin, which is likely to extend their current work stoppage well into next week.
The South African Finance Minister stated that mine unrest has the potential to be "extremely damaging" to their economy, which may indicate their expectations for strikes to spread to other mines in the region. Unless there is substantive progress in resolving current labor problems in South Africa, October platinum is widely expected to remain within this current uptrend.
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