* Below-consensus U.S. auto sales data pressure platinum
* Gold steady as investors seek less risky assets
(Recasts, updates throughout, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, Oct 2 (Reuters) - Platinum tumbled to a 33-month low
as fears over demand from the car industry weighed on prices and
the dollar rose to a one-year high versus the euro, but gold was
steady as investors bought bullion as a haven from risk.
The passing of a proposed $700-billion rescue plan for Wall
Street by the U.S. Senate has calmed some fears over the outlook
for the financial sector, but the package has still to be
approved by the House of Representatives.
Spot platinum <XPT=> was quoted at $979/999 an ounce at 0920
GMT, against $1,002 an ounce in late New York trade on
Wednesday. Earlier it touched a session low of $976, its weakest
level since January 2006.
Low U.S. auto sales figures released on Wednesday are
pressuring the white metal.
"Motor vehicle sales in the U.S. came out way below
expectations, the lowest since 1993 in terms of a month-on-month
increase," said Standard Bank analyst Walter de Wet.
"When the market is illiquid, it is vulnerable to large
moves," he added. "Combined with that, we have the dollar which
is continuing to strengthen. There is nothing working in favour
of platinum group metals at this stage."
Major carmakers reported plunging U.S. sales for September,
led by a 34 percent slide at Ford Motor Co <F.N>. The escalating
credit crisis is raising fresh doubts as to when the world's
largest car market will stabilise. []
A dip in car sales in the U.S. has raised fears over the
outlook for the entire global automotive industry.
Around half of the world's annual platinum demand comes from
the car industry, which uses the white metal as a component in
autocatalysts.
Platinum prices have shed nearly 60 percent of their value
since they hit a record $2,290 an ounce in March this year, as
demand fears dragged the market lower.
The stronger dollar is also pressuring platinum. The U.S.
currency firmed to a one-year high against the euro on Thursday
as the euro slid ahead of a European Central Bank decision on
interest rates. []
A stronger dollar makes dollar-priced metals such as
platinum more expensive for holders of other currencies. It also
tends to weigh on gold, which is often bought as an alternative
investment to the dollar.
GOLD HOLDS STEADY
The firm dollar and losses in gold's other main external
driver, oil, are keeping a lid on gains in gold on Thursday.
However, Fairfax analyst John Meyer said: "Gold prices have
moved very little considering the recent U.S. dollar strength
and the fall in oil prices."
Gold is taking support from the ongoing financial crisis, as
investors buy gold as a safe store of value at a time of
volatility in other assets, such as equities.
Spot gold <XAU=> was quoted at $867.10/869.10, against
$868.75 in late New York trade on Wednesday.
Traders are eyeing the progress through Congress of the U.S.
government's proposed $700-billion rescue plan for Wall Street.
On Wednesday, the plan was approved by the Senate, but still
needed the assent of the House of Representatives before it
could be put in place. Uncertainty over its future was still
unsettling the markets, analysts said.
"The U.S. Senate passed the $700-billion rescue package
after adding some sweeteners," said Dresdner Kleinwort analysts
in a note. "However, the market reaction is muted as the bill is
now going back to the House, which will vote on it on Friday."
"After representatives rejected the Paulson plan on Monday,
investors remain cautious," it added.
Among other precious metals, silver <XAG=> slipped to
$12.31/12.39 an ounce from $12.52, while palladium <XPD=> was
unchanged at $201.50 an ounce.
(Reporting by Jan Harvey; editing by Christopher Johnson)
