Gold price soars on South African power cuts

Gold and platinum prices hit record highs after South Africa’s main precious metals mines were forced to close on Friday for lack of power as the government said the country faced a “national electricity emergency.”

The halt in operations came as South Africa’s government had to take the drastic step of rationing power after the embattled state electricity company Eskom said it could provide only about 50 per cent of normal needs.

Mining executives warned of a potentially devastating impact on the industry, a mainstay of the economy, as Eskom said the mines might have to stay closed for up to six weeks.

The prospect of a long stoppage pushed spot bullion in London to a record of $923.4 a troy ounce while platinum jumped to a record high above $1,697 an ounce. South Africa is the world’s largest platinum producer, with a global market share of nearly 80 per cent, and the second largest gold producer.

Rhodium also jumped to a record high above $7,000 an ounce – South Africa accounts for more than 70 per cent of the world’s supply. READ THE REST