* Platinum, palladium fall more than 4 pct as investors sell
* Gold falls to one-month low as dollar pares losses
* Obama plan to curb banks' risk-taking spooks commodities
(Updates prices, adds fall in gold)
By Jan Harvey
LONDON, Jan 22 (Reuters) - Platinum and palladium prices
fell more than 4 percent on Friday on fears the metals' run-up
to their highest level since mid-2008 this week, after the
launch of new U.S. investment products, may have been overdone.
Gold hit a one-month low and silver prices also fell,
reflecting losses in other commodities after U.S. President
Barack Obama proposed tough new rules to limit risk-taking by
banks, which analysts fear may curb investment flows into the
asset class.
Spot platinum <XPT=> was at $1,532 an ounce at 1457 GMT,
against $1,593 an ounce late in New York on Thursday, having
earlier touched a low of $1,520, its weakest since Jan. 6.
Palladium <XPD=> hit a low of one-week low of $425 an ounce,
and was later at $428 an ounce against $449.
The launch of physically-backed platinum and palladium
exchange-traded funds in New York earlier this month lifted
prices as it boosted investment interest.
"The fundamental market is still looking very positive for
platinum and palladium," said Societe Generale analyst David
Wilson. "But there was perhaps a bit too much excitement about
the impact on the investor side of physically backed ETFs."
"The supply outlook for platinum in particular is looking
fairly constrained..., then you have the ramp-up in auto
production in China, which is expected to continue this year,
and U.S. auto production is expected to rebound."
Around half of platinum and palladium demand comes from the
auto sector, with carmakers using the metals in the manufacture
of catalytic converters.
Palladium had been the year's best performer among precious
metals, up 16 percent at its 2010 high of $471.75.
"Palladium had outperformed going up and is suffering a
delayed reaction," said Mitsubishi Corp precious metals
strategist Tom Kendall. "It doesn't have the same degree of
support from buyers of physical as does platinum."
GOLD STEADIES
Gold and silver also fell, giving up earlier gains, as the
dollar pared losses versus the euro. The single currency is
still being pressured by concerns about the fiscal situation in
Greece. []
Spot gold <XAU=> hit a one-month low of $1,085.10 and was
later at $1,086.20 an ounce, against $1,094.20 late on Thursday.
Silver <XAG=> hit its lowest since Jan. 4 at $16.99 and was
later at $17.04 an ounce versus $17.35.
"The dollar has been the driving force (for gold)," said
Peter Fertig, a consultant with Quantitative Commodity Research.
Strength in the U.S. unit curbs gold's appeal as an
alternative asset and makes dollar-priced commodities more
expensive for holders of other currencies.
Elsewhere Indian gold buyers continued to take advantage of
lower prices on Friday, with more buying expected if bullion
continues to fall. "Traders mostly will look at buying below
$1,070," said a dealer with a private bank in Mumbai.
[]
Investment demand was lacklustre, with holdings of New
York's SPDR Gold Trust <GLD> exchange-traded fund unchanged for
a second session on Thursday. []
(Reporting by Jan Harvey; Editing by Anthony Barker)
