UPDATE 4-Platinum dives 7 pct on weak demand, dollar

                                
 * Platinum group metals slide on demand outlook, firm dollar
                                
 * Traders await U.S. car sales data later on Friday
                                
 * Gold, silver slip as dollar strengthens on U.S. jobs data
  
                                
 (Recasts, updates throughout)
                                
 By Jan Harvey
                                
 LONDON, Aug 1 (Reuters) - Platinum slid nearly 7 percent and
palladium by more than 5 percent on Friday as a spate of poor
results from the automotive sector and a rising dollar triggered
a sell-off of the precious metals.
                                
 Gold and silver also slipped, albeit less dramatically, as
the dollar firmed in the wake of better-than-expected U.S. jobs
data.
                                
  Spot platinum <XPT=> fell to $1,639.00/1,659.00 an ounce at
1346 GMT from $1,749.50/1,769.50 late in New York. Earlier it
touched a session low of $1,629.00, its weakest level since
January 25.
                                
 Among other precious metals, spot palladium <XPD=> fell to
$361.00/369.00 an ounce from $379.50/387.50 late in New York. It
touched a seven-month low of $356.00 earlier in the session.
                                
 "The combination of a stronger dollar and weaker results
from automakers certainly was a knock-out blow for the platinum
market," said Merrill Lynch metals strategist Daniel Hynes.
                                
 Fears over the health of the car industry, which consumes
around 50 percent of the world's platinum each year, were
fuelled on Friday after BMW <BMWG.DE> issued a profit warning
and Nissan <7201.T> missed quarterly operating profit forecasts.
[ID:nL1664534]
                                
 Traders are awaiting U.S. car sales data for July, due later
in the session, although most expect auto sales to be lower.
                                
 Figures from Spain released Friday showed its car sales fell
27.5 percent in July, while French sales also declined.
[ID:nMDT005476]
                                
 "We all know U.S. car sales forecasts are low, so there is
some possible new interest in shorting the market (making bets
on lower prices) today," one European metals trader told
Reuters.
                                
 
                                
 BULLION FALLS
                                
 Gold and silver prices also fell, pressured by a firmer
dollar and weaker oil prices. The dollar strengthened in the
wake of the closely watched monthly non-farm payrolls data.
                                
 "The lower-than-expected jobs loss number boosted the dollar
as soon as it hit the wires and deflated gold further," said Jon
Nadler, an analyst at Kitco Bullion Dealers. "The metal promptly
lost $10 to fall to $903."
                                
 A stronger dollar tends to pressure bullion, as it crimps
buying of the precious metals as an alternative investment.
[ID:nL1481340]
                                
 Lower oil prices are also reducing gold's appeal as a hedge
against inflation, and undermining interest in commodities as an
asset class. Prices of oil, grains and base metals are lower on
Friday. [ID:nSP263767]
                                
 Negative sentiment in commodity markets over the past month
can be seen in the performance of indices such as the S&P GSCI
<.SPGSCITR> and the Reuters-Jeffries CRB Index <.RJCRBTR>.
[ID:nL03787750]
                                
 Gold <XAU=> fell to $907.40/908.40 an ounce from
$913.45/914.65 an ounce late in New York on Thursday, when it
had a volatile session, trading in a wide $20 range.
                                
 Silver <XAG=> edged down to $17.45/17.52 an ounce from
$17.71/17.77 late in New York.
 (Reporting by Jan Harvey; Editing by Editing by Peter
Blackburn)