* Platinum up 20 pct since deadly clash at S. African mine
* Platinum seen overbought, could tumble once strikes end
* Gold flat, retreats from 6-month high as market awaits Fed
* Coming up: U.S. Fed. rate decision; Thursday, 1630 GMT
By Frank Tang
NEW YORK, Sept 12 (Reuters) - Platinum rose around 2.5
percent on Wednesday for its biggest one-day rally in a month,
boosted by supply fears after sprawling labor unrest halted
production at some mines in top platinum producer South Africa.
Gold was up by pennies, retreating after setting a six-month
high during the session, as some investors took profits ahead of
a U.S. Federal Reserve policy statement on Thursday.
Machete-wielding strikers forced top world platinum producer
Anglo American Platinum to shut down some South African
operations, widening the labor unrest sweeping through the
country's mining industry.
Platinum, mostly used as an autocatalyst to clean tailpipe
emissions, has soared 11 percent in the last eight session. The
metal's relative strength index (RSI) rose above 80 on Wednesday
to its most overbought level since early 2008.
"Platinum's rally is very strike-specific at this point, and
it may pull back when the supply worries are over as platinum is
now getting significantly overdone," said Frank McGhee, head
precious metals trader Integrated Brokerage Services LLC.
Spot platinum rose by 2.7 percent to $1,642.24 an
ounce by 12:42 p.m. EDT (1642 GMT), on track for its biggest
one-day percentage gain since Aug. 16. Wednesday's high of
$1,654.49 marked its highest in five months.
U.S. NYMEX October platinum futures were up $39 to
$1,646 an ounce.
The price of platinum has risen by nearly 20 percent since a
strike at the world's third-largest producer Lonmin
turned violent last month, leaving 44 dead and dozens injured in
clashes between police and striking workers.
PLATINUM MARKET SURPLUS
Yet a forecast surplus of platinum, stemming from faltering
demand from the European car industry, could limit further price
gains, analysts said.
"Prior to this, this was a market that was in surplus this
year. It might move towards balance, but it's not a market that
is going to be in a significant deficit this year," said David
Jollie, analyst at Mitsui Precious Metals.
South Africa produces about 80 percent of the world's
platinum. The strike at the operations of Lonmin have removed
close to 60,000 ounces of supply from the market in a month.
Gold retreated as some investors pared their bullish bets on
hopes of Fed stimulus.
A Reuters poll showed that odds are mounting that the Fed
could take action Thursday to energize a U.S. economy that is
struggling to gain momentum in the face of a lackluster labor
market and uncertain fiscal policy.
Spot gold inched up 6 cents to $1,731.34 an ounce,
sharply below a session high of $1,746.20 an ounce, which marked
the loftiest level since Feb. 29.
Among other precious metals, silver was down 1.3
percent at $33.01 an ounce, while palladium rose 1.7
percent on the day to $676.97 an ounce.
Prices at 12:42 p.m. EDT (1642 GMT)
LAST NET PCT YTD
CHG CHG CHG
US gold 1734.20 -0.70 0.0% 10.7%
US silver 32.825 -0.684 -2.0% 17.6%
US platinum 1646.00 39.00 2.4% 17.6%
US palladium 681.00 6.60 1.0% 3.8%
Gold 1731.34 0.06 0.0% 10.7%
Silver 33.01 -0.48 -1.3% 19.3%
Platinum 1642.24 42.84 2.7% 17.9%
Palladium 676.97 11.47 1.7% 3.8%
Gold Fix 1737.00 -5.75 -0.3% 10.3%
Silver Fix 33.93 41.00 1.2% 20.4%
Platinum Fix 1644.00 8.00 0.5% 19.0%
Palladium Fix 678.00 0.00 0.0% 6.6%
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