SOUTH AFRICA

Mozambique's capital Maputo got back to work on Friday after two days of rioting, triggered by a sharp hike in bread prices, which the government said left seven dead, 288 injured and millions of dollars of damage.

A woman carrying pole vaults in a purpose-built bag struggles to make her way through a crowd of screaming children at an athletics meeting in northern Italy.

Platinum miners are on a song this year with their profits scaling new heights. This week, Impala Platinum announced that production of platinum, palladium, rhodium and other associated metals rose from 3.43 million ounces to 3.69 million ounces this year.

A powerful South African labour leader threatened on Sunday to withdraw support for President Jacob Zuma's African National Congress, ending a long- standing alliance strained by a nearly three-week-old strike.

South African President Jacob Zuma on Saturday accused striking state workers of abandoning the sick at hospitals and said he expected a deal to be reached soon to end the labour action by about 1.3 million.

South Africa's largest union threatened Friday to bring gold and platinum mining and other industries to a halt next week in a strike to support a stoppage by 1.3 million state workers.

Gold held steady near $1,235 an ounce in Europe on Friday as buyers took to the sidelines ahead of key U.S. economic data due later in the session and a hotly awaited speech from Federal Reserve chair Ben Benanke.

Copper and other base metal prices rose up to 5 per kg in the non-ferrous metal market on Thursday on continued buying by stockists on industrial demand amid firming trend at the London Metal Exchange.

In an obvious hint to the imminent platinum and palladium supply woes, the JPMorgan Chase said that the metals will witness a huge rise in prices due to the concerns over implementing changes to mining rules in South Africa, which is the largest producer of the metals. Concern about rule changes intensified in recent weeks as Kumba Iron Ore and Lonmin said the government had deprived them of mining rights. The ANC is preparing to discuss mine nationalisation at a congress next month.

Riding on increased auto sales and jewellery deamand, platinum and palladium have become a favourite investment option for several investors across the globe.

Gold production has declined by 5.3% in volume terms in June as compared to same period last year in South Africa. According to a report released by Statistics South Africa, production of non-gold minerals and total mineral production both fell 4.9% that month compared with the same month last year.

Yet another problem hit the gold mining business in South Africa with four illegal miners were killed in a shooting at an abandoned gold mine owned by relatives of former president Nelson Mandela and President Jacob Zuma. Mining industry in South Africa has been reeling under safety problems for the past several months and this latest deaths are bound to create hurdles in the mining sector in South Africa.

Former global top gold producer, South Africa's output fell 5,3% in volume terms in June compared with the corresponding month last year. In a statement, Statistics SA said production of nongold minerals and total mineral production both fell 4,9% that month compared with the same month last year.

South African autoworkers seeking wage increases more than triple the inflation rate went on an indefinite strike on Wednesday, slamming the brakes on auto production in Africa's largest economy.

Even if the revival has improved the prospects for the diamond business across the world, but the situation does not seem to be favouring the diamond polishing units as most of them are faced with either shortage of labour or increased cost in terms of wages.

Problems at the mines in South Africa, increasing demand due to the rise in auto sales and emerging markets like India and China will ensure that platinum and palladium outperform gold in the coming years.

Gold retreated on Thursday, easing from earlier highs near $1,200 an ounce, as the dollar pared losses against the euro after Wall Street equities opened lower in jittery trade ahead of Friday's U.S. payrolls data.

Renowned model Naomi Campbell has been granted special protection when she testifies at a UN war crimes tribunal on Thursday over claims that she was given a blood diamond by Liberia's former president Charles Taylor. The court ruled that no one may photograph or film the supermodel as she enters or exits the court building, or while she is in it. She will also have a lawyer on hand to make sure she does not say anything incriminating.

Supermodel Naomi Campbell has applied for banning media coverage surrounding her as she prepares to give testimony in the war crimes trial of former Liberian President Charles Taylor. Campbell is to appear in a court in The Hague on August 9 to answer questions about whether she was given a blood diamond by former Liberian dictator, Daily Mail online reported.

The international community is pressuring the Juba and Khartoum governments to speed up preparation for a vote on South Sudan's future - a decision that will be dominated by the fate of coveted oil resources -- but an expert on the African country criticizes the lack of understanding about Sudan.

Once again Europe has come to the rescue of gold, which has been witnessing a steady slide during the past few weeks. With Italy and Greece plunging into crisis again, the uncertainty looming over Europe has added to the fear among investors and gold prices are set to cash in on this panic with more demand from safe haven buying.