* Impala won't budge on offer as S.Africa strike continues
* Expected Russian supply woes, demand boost palladium
* US bond manager PIMCO bullish on gold
* Coming up: US federal budget Wednesday
(Updates market activities)
By Frank Tang and Clara Denina
NEW YORK/LONDON, June 10 Palladium jumped to its
highest in nearly 3-1/2 years on Tuesday, while platinum also
rallied after talks to resolve a five-month strike in top
producer South Africa collapsed.
Impala Platinum, the world's second-largest
platinum producer, said on Tuesday that it had "exhausted all
its financial means" in its wage offer.
Wage settlement talks between South Africa's main mine
workers' union and major platinum producers broke down on
Monday, dashing hopes for an end to a crippling five-month
Palladium, of which South Africa is the
second-biggest producer, hit its highest level since February
2011 at $854 an ounce. It was last up 1.7 percent at $852.18 as
of 4:10 p.m. EDT (2010 GMT).
"For palladium, it is ... the possibility of a shortfall in
supply from number one producer Russia and strong demand from
the physical side on the back of higher car sales and also
investor demand," Commerzbank analyst Eugen Weinberg said.
Platinum rose 2.2 percent to $1,475.75 an ounce after
hitting its highest since May 26 at $1,481.50.00.
The strike has halted production at mines that normally
account for about 40 percent of global platinum output.
GOLD RISES TOO
Spot gold rose 0.7 percent to $1,260.30 an ounce.
U.S. COMEX gold futures for August delivery settled up
$6.20 at $1,260.10.
"You have the stock market at an all-time high. Investors
are going to have to find a place to diversify their money and
the precious metals are very under-owned," said COMEX gold
options floor trader Jonathan Jossen.
U.S. bond manager PIMCO said on Tuesday that gold should
benefit from rising inflation and lower real interest rates.
"We find gold attractive at current valuations," Mihir
Worah, PIMCO's deputy chief investment officer said in a note.
Silver rose 0.8 percent to $19.17 an ounce.
4:10 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold AUG 1260.10 6.20 0.5 1250.10 1263.80 99,963
US Silver SEP 19.210 0.102 0.5 19.015 19.275 11,813
US Plat JUL 1482.20 27.90 1.9 1451.40 1485.80 15,183
US Pall SEP 854.55 12.95 1.5 841.05 855.75 5,780
Gold 1260.30 8.72 0.7 1250.76 1263.00
Silver 19.170 0.150 0.8 19.010 19.230
Platinum 1475.75 31.85 2.2 1451.60 1481.50
Palladium 852.18 14.28 1.7 842.80 854.00
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 120,942 160,805 165,454 12.91 -0.23
US Silver 54,281 43,249 55,154 17.34 -0.32
US Platinum 17,374 13,000 12,307 17.87 1.15
US Palladium 5,853 8,885 5,825 18.69 0.42
(Additional reporting by A. Ananthalakshmi in Singapore;
editing by Jason Neely and Pravin Char; Editing by Diane Craft
and Andre Grenon)