* Platinum hits 6-month low on demand fears
* Gold below $900 on weaker oil, awaits Fed rate decision
(Updates prices)
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, down from $1,551.00/1,571.00 late
in New York on Monday.
"People are expecting demand from automakers to decrease
because of poor sales, especially in North America. Sentiment
is too bearish," said a dealer in Hong Kong.
Despite lower prices, there was a lack of buying interest
from automakers and jewellers, which suggested buyers had
waited for further correction to around $1,500 an ounce, said
dealers.
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.
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.
The metal has lost more than 30 percent in value since
hitting an all time high at $2,290 in early March, when a power
shortage in main producer South Africa disrupted mining and
sparked supply worries.
Gold <XAU=> edged down to $893.15/894.15 an ounce from
$895.55/896.95 late in New York. It hit an intraday low of
$891.85 on Tuesday, its lowest level in nearly six weeks, after
oil prices tumbled, which reduced its safe haven appeal.
"I guess sentiment is also bearish on gold and physical
buyers are simply waiting for the price to fall further. It may
find support around $890," said the Hong Kong dealer.
"The trading range will be tight, with resistance at $902
or $903. People are waiting for the Fed's rate decision," he
said.
The U.S. Federal Reserve 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 by $1 on Tuesday towards $120 a barrel on
rising OPEC output and weak US demand. []
Gold futures for December delivery <GCZ8> on the COMEX
division of the New York Mercantile Exchange fell $7.1 to
$900.80 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 $355.00/350.00 an ounce from
$349.50/357.50 late in New York. Silver <XAG=> edged down to
$16.89/16.95 an ounce from $17.00/17.05 late in New York.
Precious metals prices at 0200 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 892.95 -0.70 -0.08 7.24
Spot Silver 16.89 0.01 +0.06 14.35
Spot Platinum 1536.50 -19.00 -1.22 1.09
Spot Palladium 354.00 3.50 +1.00 -3.80
TOCOM Gold 3132.00 -64.00 -2.00 2.35
26890
TOCOM Platinum 5353.00 -252.00 -4.50 0.26
20674
TOCOM Silver 592.70 -21.30 -3.47 9.56
579
TOCOM Palladium 1257.00 -36.00 -2.78 -6.96
1082
Euro/Dollar 1.5533
Dollar/Yen 108.23
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Clarence Fernandez)
