* Platinum hits 6-month low on demand fears
* Gold below $900 on weaker oil, awaits Fed rate decision
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Aug 5 (Reuters) - Platinum tumbled to its lowest
level in more than six months on Tuesday, extending a 6-percent
drop in the previous session, on fears of falling demand from
automakers, while gold hovered below $900 on weaker oil.
Platinum prices have taken a dramatic turn since spiking to
a record high above $2,000 an ounce in March, losing much of
their gains to profit taking and a slowing U.S. economy that
threatens to slash demand for autocatalysts.
Spot platinum <XPT=> fell as low as $1,530.00 an ounce, its
weakest since late January, before bouncing to $1,535.00/1,545
an ounce on light buying from jewellers -- still down from
$1,551.00/1,571.00 late in New York on Monday.
"We can say it is already oversold but worries about
recession are not good for platinum and the metals sector,"
said Ronald Leung, director of Lee Cheong Gold Dealers in Hong
Kong.
Automakers were on the sidelines even though platinum has
lost more than 30 percent in value since hitting an all time
high of $2,290 in early March, when a power shortage in main
producer South Africa disrupted mining and sparked supply
worries.
Platinum was battered by worries about a slowdown in the
car industry after U.S. car sales slipped to a 16-year low in
July, led by a 27 percent drop at General Motors Corp amid a
slowdown in the U.S. economy. Autocatalysts account for more
than 60 percent of global demand.
Automobile manufacturers use the metal to help scrub
environmentally-damaging substances from car exhaust fumes.
"There's a little bit of improvement in demand from the
jewellery sector," said Dick Poon, manager of precious metals
at Heraeus Ltd in Hong Kong.
But volumes were low with many manufacturers still on
summer holiday, said Poon, who pegged the downside at $1,480 an
ounce. "It's only a small recovery right now," he said.
Gold <XAU=> fell as low as $884.20 an ounce, its lowest
level in nearly six weeks, down from $895.55/896.95 late in New
York after oil prices tumbled, which reduced its safe haven
appeal.
Physical buying from jewellers cushioned the fall but gold
was also under pressure from a firming U.S. dollar.
"We saw a little bit of buying. Not that much. I think gold
is heading to $870 and $860," said Leung of Lee Cheong Gold
Dealers.
Investors awaited a rate decision by the U.S. Federal
Reserve after a sell-off in commodities pushed up the dollar
index, which measures the U.S. currency's performance against a
basket of six currencies, to as high as 73.699, the highest
since mid-June.
The Fed is widely expected to keep benchmark interest rates
steady at 2.0 percent later on Tuesday in face of higher risks
of inflation and to economic growth. []
Oil <CLc1> fell more than $1 owards $120 a barrel on rising
OPEC output and weak U.S. demand. []
New York gold futures <GCZ8> fell $11.6 to $896.30 an
ounce.
The most active Tokyo platinum contract for June 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange fell by the
daily 300 yen limit to 5,305 yen per gram, reflecting weakness
in cash market.
Spot palladium <XPD=> rose to $350.50/358.50 an ounce from
$349.50/357.50 late in New York. Silver <XAG=> edged down to
$16.80/16.86 an ounce from $17.00/17.05 late in New York.
Precious metals prices at 0719 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 887.30 -6.35 -0.71 6.56
Spot Silver 16.82 -0.06 -0.36 13.88
Spot Platinum 1535.00 -20.50 -1.32 0.99
Spot Palladium 350.50 0.00 +0.00 -4.76
TOCOM Gold 3098.00 -98.00 -3.07 1.24
60327
TOCOM Platinum 5305.00 -300.00 -5.35 -0.64
30374
TOCOM Silver 586.50 -27.50 -4.48 8.41
1208
TOCOM Palladium 1233.00 -60.00 -4.64 -8.73
2504
Euro/Dollar 1.5525
Dollar/Yen 107.71
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
