* Johnson Matthey sees platinum deficit at 1.218 mln oz
* Gold edges up as dollar rise limits gain
* WGC report shows India, China demand in Q1 dropped
* Coming up: US mortgage market index
(Adds second byline, dateline, updates market activities)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, May 20 Platinum group metals
rose on Tuesday as South Africa's longest and costliest miners'
strike ground on, while gold edged up as gains in the dollar
held it near key chart support.
Platinum gained in intraday trade after refiner Johnson
Matthey said it believed the deficit in the platinum market will
expand to 1.218 million ounces this year, its largest shortfall
in a data series going back to 1975.
Spot platinum was up 0.1 percent at $1,464.75 an
ounce by 3:51 p.m. EDT (1951 GMT). Earlier, it hit a high of
$1,476.30, not far from last week's peak of $1,483.50, its
strongest since early March.
U.S. NYMEX platinum contract for July delivery
settled down $1.30 at $1,468.90 an ounce, underperforming spot.
Despite recent strength, platinum is struggling to break
higher on the back of the miners' strike in top platinum
producer South Africa, source of around three-quarters of world
supply, as the availability of above-ground stocks curbs gains.
"While palladium is in an uptrend, platinum is still stuck
in a sideways trading pattern. $1,490 seems to be too much of a
challenge at this stage," Saxo Bank's head of commodities
research Ole Hansen said.
The four-month action against Anglo American Platinum
, Impala Platinum and Lonmin, has
disrupted 40 percent of platinum output and could cost 1 million
ounces of production this year.
The strikes turned violent this month, with four miners
killed as more employees tried to report for work, ignoring
calls by the union to continue protesting.
Palladium rose 1.2 percent to $821.90 an ounce.
Palladium holdings of exchange-traded funds hit record highs
after an 8,000-ounce inflow into Standard Bank's AfricaPalladium
fund on Monday.
Gold, meanwhile, remained near $1,290 an ounce as the dollar
index rose 0.1 percent and an industry report showed demand in
major consumers China and India fell in the first quarter.
Spot gold edged up 0.2 percent to $1,294.29 an ounce,
while U.S. gold futures for June delivery settled up 80
cents at $1,294.60 per ounce.
The World Gold Council said on Tuesday consumer gold demand
in the world's biggest buyer China fell 18 percent to 263.2
tonnes, with Chinese demand for gold coins and bars down 55
percent in the first quarter, offset only partially by a 10
percent rise in jewellery offtake.
Indian consumer demand was down by just over a quarter to
190.3 tonnes, although a drop in sales from bullion-backed
investment funds kept overall demand steady.
Among other precious metals, spot silver edged up 0.2
percent at $19.36 an ounce.
3:51 PM EST LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold JUN 1294.60 0.80 0.1 1286.00 1297.20 122,394
US Silver MAY 19.367 0.045 0.2 19.270 19.420 14
US Plat JUL 1468.90 -1.30 -0.1 1466.50 1479.50 9,720
US Pall JUN 825.85 10.25 1.3 814.00 830.00 5,215
Gold 1294.29 2.69 0.2 1286.30 1296.60
Silver 19.360 0.040 0.2 19.260 19.430
Platinum 1464.75 0.75 0.1 1466.00 1476.30
Palladium 821.90 9.40 1.2 816.00 828.00
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 143,692 142,391 179,424 13.9 -0.60
US Silver 30,988 54,912 55,355 20.92 0.30
US Platinum 9,812 9,621 12,512 17.02 -0.67
US Palladium 7,503 5,787 5,826 23.3 -0.60
(Editing by David Evans, Jason Neely and Tom Brown)