New high for platinum on mine closures

Both platinum and gold hit new highs Friday.

April platinum was $67.10 higher to $1,680.10 per troy ounce shortly before the close of floor trade in New York for the second record-breaking day in a row as South African mines were forced to shut after a state utility could not guarantee its ability to provide sufficient electricity to run operations.

The work stoppage comes at a time when analysts and mining companies are already predicting that supplies will be short at least through 2009.

Meanwhile, February gold was as high as $924.30 per troy ounce, a new record for a most-active contract, during the session in New York and was trading at $910.40 per troy ounce just before the end of the floor session, still a gain of $4.60 on the day.

Gold is seen as an attractive investment by those worried about inflation.

March silver was also higher, adding 15 cents to $16.48 per troy ounce.

Among base metals, March copper added 1 cent to $3.18 per pound on signs that demand for the metal is up in China after inventories tracked by the Shanghai Futures Exchange dropped by 32 percent just this week for the biggest decline in almost three years.

London Metal Exchange inventories were also lower on the session, sending three-month copper in London up $95 to $7,115 per tonne.