* Platinum group metals slide on poor results from
carmakers
* Gold pared losses as oil rises but still ended lower
(Recasts, updates with quotes, closing prices, market
activity, adds NEW YORK to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Aug 1 (Reuters) - Platinum ended 6 percent
lower and palladium also sank on Friday as a spate of poor
results from the automotive sector and firmer oil prices
triggered a sell-off.
Gold recovered earlier losses, however, as oil prices rose,
boosting interest in commodities and fueling fears over
inflation, and as the dollar steadied.
Spot platinum <XPT=> ended at $1,646.50/1,666.50 an ounce,
sharply below $1,749.50/1,769.50 late in New York on Thursday.
Earlier it touched a session low of $1,629.00, its weakest
level since Jan. 25.
Spot palladium <XPD=> finished at $363.50/371.50 an ounce,
down from $379.50/387.50 on Thursday. It touched a seven-month
low of $356.00 earlier in the session.
"Everybody expects car demand to be very low and the higher
oil price will dampen it further," said Commerzbank analyst
Eugen Weinberg.
Fears over the health of carmakers, which consume around 50
percent of the world's platinum each year, were fueled after
General Motors Corp <GM.N> posted a $15.5 billion quarterly
loss on Friday.
The company's North American sales dropped by 20 percent
and plunging prices for SUVs prompted deep charges for its auto
finance business. []
Earlier in the session Germany's BMW <BMWG.DE> also issued
a profit warning and Japan's Nissan <7201.T> missed quarterly
operating profit forecasts. []
U.S. car sales also tumbled in July, reflecting a deepening
downturn in the industry. []
Figures from Spain released Friday showed its car sales
fell 27.5 percent in July, while French sales also declined.
[]
"This is the same old story -- too many people are long in
the metal. What we are seeing right now stems from the demand
side of the equation," said one New York precious metals
dealer.
BULLION RECOVERS
Gold recovered earlier losses as oil prices climbed almost
$3 a barrel and as the dollar steadied, giving up earlier
gains, in the wake of the closely watched monthly nonfarm
payrolls data.
A stronger dollar tends to pressure bullion as it crimps
buying of the precious metals as an alternative investment.
[]
Oil prices bounced higher on Friday afternoon, gaining as
much as $3 a barrel, led by a surge in gasoline futures and
amid supply fears fueled by tensions in the Middle East.
[] U.S. crude futures ended $1.02 higher at
$125.10.
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>.
[]
Gold <XAU=> was at $909.85/911.45 by New York's last quote
at 2:45 p.m. EDT (1845 GMT) against $913.45/914.65 an ounce on
Thursday, when it had a volatile session, trading in a wide $20
range.
U.S. gold futures for December delivery <GCZ8> settled down
$5.20 at $917.50 an ounce on the COMEX division of New York
Mercantile Exchange.
Silver <XAG=> was lower at $17.47/17.55 an ounce from
$17.71/17.77.
In research news, HSBC maintained its 2008 gold forecast at
$915 an ounce but raised its long-term outlook, citing support
from inflation and a weak dollar, but weak jewelry sales could
weigh. The bank also lifted its forecast for other precious
metals. []
(Additional reporting by Pratima Desai in London; editing by
Jim Marshall)
