* South African strike nears end after wage deal
* Palladium posts 3.5 pct weekly drop, biggest since Jan.
* No gold rally as traders ignore Iraq developments
* Coming up: U.S. New York Fed manufacturing Monday
By Frank Tang and Clara Denina
NEW YORK/LONDON, June 13 Palladium tumbled to a
one-month low on Friday, extending its biggest drop in nearly a
year in the previous session, as investors awaited confirmation
that South Africa's longest mining strike would end soon.
Gold prices edged up after Thursday's 1 percent gain. The
safe-haven metal, however, failed to rally further on market
expectations that security conditions in Iraq will improve soon,
The leader of South Africa's striking AMCU union said on
Friday he hoped to meet the three major platinum firms over the
weekend to give them formal feedback from workers about a wage
offer that could mean the end of a five-month strike.
On Wednesday, palladium had rallied to a 13-year high on
speculation of a deadlock in wage talks.
Palladium, however, tumbled as much as 5 percent on Thursday
on news that platinum group metal (PGM) producers and the AMCU
agreed in principle on a wage deal, taking a step closer to
resuming operations after the longest strike in the 130-year
history of South Africa's mines.
Analysts said PGMs still have some upside as the miners
start the long and slow process of getting operations back up.
"South African supply issues do not end with a resolution of
the 21-week old strike," said UBS metals strategist Edel Tully.
"A correction in PGMs would present an attractive entry
Palladium was down 1.2 percent to $812 an ounce by
3:11 p.m. EDT (1911 GMT), having touched its lowest since May 16
earlier. The metal lost about 3.5 percent for the week, its
biggest decline since January.
Platinum fell 0.4 percent to $1,428.50 an ounce. It
had lost almost 3 percent on Thursday in its biggest daily drop
since June 2013.
South Africa's crippling five-month strike in the platinum
belt has lifted palladium prices by more than 15 percent this
year, outpacing gains in platinum which is up just six percent.
NO GOLD RALLY DESPITE IRAQ
Spot gold was up 0.2 percent at $1,275.39 an ounce.
U.S. COMEX gold futures for August delivery settled up 10
cents at $1,274.10 an ounce.
The metal, however, has not risen further following
Thursday's 1-percent gain.
On Friday, Iraq's most senior Shi'ite Muslim cleric urged
followers to take up arms against a full-blown Sunni militant
insurgency to topple Shi'ite Prime Minister Nuri al-Maliki,
escalating a conflict that threatens civil war and a possible
break-up of the country.
"The general thought out there is that what's going on in
Iraq will be contained and should not create a significant
impact globally by affecting oil production," said Mike Meyer,
assistant vice president at EverBank World markets in St. Louis.
Silver rose 0.7 percent to $19.63 an ounce.
3:11 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold AUG 1274.10 0.10 0.0 1270.90 1277.60 77,626
US Silver SEP 19.699 0.126 0.6 19.525 19.760 12,566
US Plat JUL 1435.00 -6.30 -0.4 1433.20 1457.30 11,925
US Pall SEP 812.60 -6.80 -0.8 806.35 831.25 8,547
Gold 1275.39 2.53 0.2 1271.00 1276.80
Silver 19.630 0.140 0.7 19.510 19.700
Platinum 1428.50 -6.00 -0.4 1433.00 1453.50
Palladium 812.00 -10.00 -1.2 808.50 829.60
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 80,224 157,616 165,263 12.81 -0.63
US Silver 64,905 44,418 55,217 16.72 -0.25
US Platinum 12,823 13,635 12,325 18.4 -0.42
US Palladium 8,672 8,952 5,834 23.01 3.60
(Additional reporting by Lewa Pardomuan in Singapore; Editing
by Susan Fenton, David Evans, Meredith Mazzilli and Nick