* 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 $1,541.50/1,561
an ounce on light buying from jewellers -- still down from
$1,551.00/1,571.00 late in New York on Monday.
"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.
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.
"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.
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.
Gold <XAU=> edged down to $893.05/894.05 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 more than $1 owards $120 a barrel on rising
OPEC output and weak US demand. []
New York gold futures <GCZ8> fell $6.2 to $901.70 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 $354.00/362.00 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 0253 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 893.35 -0.30 -0.03 7.28
Spot Silver 16.89 0.01 +0.06 14.35
Spot Platinum 1541.50 -14.00 -0.90 1.41
Spot Palladium 354.00 3.50 +1.00 -3.80
TOCOM Gold 3135.00 -61.00 -1.91 2.45
27392
TOCOM Platinum 5360.00 -245.00 -4.37 0.39
20748
TOCOM Silver 592.70 -21.30 -3.47 9.56
579
TOCOM Palladium 1255.00 -38.00 -2.94 -7.11
1084
Euro/Dollar 1.5533
Dollar/Yen 108.22
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)
